By Tony Wilbert, Wilbert News Strategies
ATLANTA (Dec. 23, 2010) - Wow. We figured 3344 Peachtree would trade for an incredible number, and it looks like it's going to.
Yesterday, Mississippi REIT Parkway Properties officially announced it planned to purchase the office portion of 3344 Peachtree for a whopping $167.3 million. With 482,699 square feet of space, that puts the sales price at more than $346 a foot, eclipsing the previous Buckhead record of $343 a foot set by the Pinnacle at Peachtree and Lenox roads.
In October, we predicted 3344 Peachtree would fetch at least $15o million. Regent Partners and Jones Lang LaSalle have to be ecstatic about the price they're getting for the 482,699-square-foot tower. 3344 Peachtree is the office portion of the $250 million mixed-use project developed by Regent Partners. The condo portion is referred to as Sovereign, where there are 82 condos now starting at $799,000.
Picking up the 2-year-old trophy asset at 3344 Peachtree is a good move for Parkway, too, which doesn't get the respect it deserves in Atlanta as a substantial owner despite owing several office buildings, including One Capital City Plaza right next door to 3344 Peachtree. Buying 3344 Peachtree - the acquisition is expected to close in late January - immediately will catapult Parkway to a major player in Atlanta.
It would have done the same for North Carolina REIT Highwoods Properties, which apparently was in the runner-up in the 3344 Peachtree sweepstakes.
For the record, here's what Parkway's CEO says about the acquisition.
Steven G. Rogers, president and chief executive officer at Parkway, stated, "We are proud of the prospect of adding an asset of the stature of 3344 Peachtree to our portfolio. We are very familiar with the Buckhead market given our long-term investment in One Capital City Plaza directly next door to this Property, and we are confident that our team will maintain the highest level of operational excellence that the current owners have established. At 93% leased and with an average remaining lease term of over seven years, this investment is expected to provide steady cash flows toFund II and will improve the profile of Parkway's Atlanta portfolio."
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