ATLANTA (Oct. 22, 2010) - Finally, it's Atlanta's turn to get into the rarified air of potential record pricing for a local trophy office tower.
Regent Partners has brought 3344 Peachtree to the market. The developer/owner hired Chris Marshall of Jones Lang LaSalle to market the 469,921-square-foot office component of the mixed-use tower that also contain Sovereign, the luxury condo. Fewer than 25,000 square feet remain for lease in the building's office portion.
Jarred Schenke of Bisnow Atlanta broke the news of the building coming to market. The tower is shown at left, rising high above Atlanta Financial Center.
Given investors' appetite for well-stabilized core assets, 3344 Peachtree should attract interest from several well-capitalized bidders. This could apply upward pressure on pricing and lead to an incredible price and price-per-square-foot not seen around here in several years.
This phenomenon has occurred in 24-hour cities across the country this year. In Chicago, 300 North LaSalle sold for a record price of $655 million, or $500 a square foot this summer. The buyer was KBS of Newport Beach, Calif.
No one in Atlanta expects any tower, even a new trophy asset, to attract $500 a square foot. But 3344 Peachtree's price could top $300 a square foot and even flirt with the $343 a foot Cousins got when it sold Pinnacle in Buckhead six years ago.
If Regent can get $320 a foot, 3344 Peachtree would sell for more than $150 million.
With the Campanile deal done, 3344 Peachtree now is the office sale to watch.
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