ATLANTA (FEB. 1, 2010) - Thank goodness for Cox Enterprises. If it weren't for the large communications/media/automotive ad company, practially all commercial real estate news out of Atlanta would be about foreclosures, extends-and-pretends and deals gone bad.
Last year, Cox and its subsidiaries singlehandedly buoyed Atlanta's commercial real estate market with several blockbuster deals. Its AutoTrader.com preliminarily agreed to lease most of a foundering office tower at Perimeter Summit. The Atlanta Journal-Constitution, my former employer, signed for about 130,000 square feet in the Central Perimeter submarket, and Cox Enterprises itself leased 95,000 square feet at 9000 Central Park.
Last week, Cox shifted its real estate dealings into high gear when the company said it would build a 600,000-square-foot office complex adjacent to its headquarters tower on Peachtree-Dunwoody Road at the Central Park development. The complex will house Cox Communications' technology department, including IT, Internet and engineering staff.
The building's total value when completed likely will be $100 million to $120 million. Cox spokesman Bobby Amirshahi tells Skyline Views the building's design is not yet completed. Cox has hired Bob Hughes, a principal at planning and landscape architecture firm HGOR, and Duda/Paine Architects to consult on the land use at the Central Park campus and construction of new buildings. Cox's headquarters at Central Park is shown in above photo.
"Our company's growth necessitates the construction of additional facilities," said Marybeth Leamer, Cox Enterprises' executive vice president of administration and human resources. "This rings especially true for Cox Communications, which is ramping up its operations to soon launch next-generation wireless voice and Internet services. We're excited to further develop out Central Park campus to meet their specific needs."
The news is sweet for Cousins Properties, which will develop the office complex, and CB Richard Ellis, whose vice chairman, John Shlesinger, advises Cox Enterprises on commercial real estate matters. News of the deal prompted Lawrence Gellerstedt, son of Cousins' CEO Larry Gellerstedt, to tweet: "How about some good CRE news for ATL and particularly my old man. He was so happy. 'Finally something worked.' "
After news of Cox's plans for a office complex broke, some asked why Cox would construct a building when so much spec space sits empty. Here's my thought: When Cox acquired the Central Park site, right, the land was entitled for two complexes of up to 600,000 square feet. The first building, Cox Enterprises' headquarters, now exists. So Cox can start on the second one ASAP, and the company will do so this year. Also, Cox has taken down as much spec space as any other corporate citizen in the past year, so that non-binding obligation has been met.
As a former employee of Cox, I'm glad to see its communications subsidiary is growing. That said, some of Cox's current struggles in the newspaper division can be laid clearly on the company itself for not reinvesting enough of its profits in the no-competition heyday back into the newspapers or the hard-working journalists who work for them.
So with the new office complex for Cox Communications, it's nice to see Cox Enterprises reinvest heavily into one of its companies.
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