Parkway Properties, based in Jackson, Miss. has made a high profile, $167 million purchase in Atlanta’s upscale Buckhead district.
Parkway bought the office and retail portion of the 50-story trophy tower 3344 Peachtree. The building is more than 95% leased, according to broker Jones Lang LaSalle, which represented the seller, Regent Partners, an Atlanta-based real estate development and investment firm. Regent completed the structure in 2008.
The eye-catching building, which stands along Atlanta’s main thoroughfare, Peachtree Road, contains approximately 484,000 sq. ft. of office and retail space and includes an 11-story parking structure, according to Parkway.
A residential portion of the building, Sovereign, which includes 82 condominiums, is not part of Parkway Properties’ investment, the purchaser said. The tower is located near a MARTA transit station close to hotels, shops, and restaurants.
The trophy is a coveted destination for office tenants. A note on Parkway’s website comments, “Sorry, there is no space available at this time.”
Tenants have not been deterred by the recession, says Chris Marshall, managing director at Jones LaSalle. “Evidence of the building’s fundamental strength is the fact it leased to its current occupancy during an economic downturn and while faced with competition of more than 2 million sq. ft. of space from four other new office buildings.”
Marketing the mixed-use building while subtracting the residences wasn’t easy, says Ralph Smalley, senior vice president at Jones Lang LaSalle. “While the complicated mixed-use components of the asset presented some challenges, it is precisely those aspects that make 3344 Peachtree so unique.” High profile office towers are drawing buyers from well beyond Atlanta, he adds.
Investors looking for alternatives to gateway cities such as Washington, D.C. are beginning to focus on markets such as Atlanta, Smalley notes. “This sale should serve as a pivotal benchmark for core pricing and attracting investors to our market.”
The site has a fitness center, bank, coffee shop, and many other amenities, including nine high-speed passenger elevators, according to Parkway.