Hines Buying Atlantic Station for Over $200M?
The owner best known for some of Atlanta's key office buildings may be about to take a marquee retail position in Midtown, sources tell us.
Sources have told us that Hines Interests may be the party that has Atlantic Station's retail mini city under contract—for an impressive price of some $200M. We first reported here that North American Properties (in a JV with CBREI) ID'd a buyer for the 586k SF trophy retail juggernaut for a close by year-end. If Hines turns out to be the buyer, it means the Houston-based REIT would pay more than $340/SF. Officials with Eastdil Secured, who have been tapped to sell the retail complex, Hines and North American Properties did not return calls seeking comment. NAP purchased the retail portion—part of the larger 1.3M SF Atlantic Station project—in 2010 for $78M, and has since rejiggered the tenant lineup and helped boost sales. It's now 91% leased with such tenants as Publix, H&M, LA Fitness and the popular Regal Cinemas.
While known for owning such office icons as Atlanta Financial Center, One Atlantic Center and 1180 Peachtree, it does have stakes in ownership of retail properties in Atlanta, including the Kroger-anchored Cherokee Plaza off Peachtree Road near Doraville. The firm also has dabbled in retail development, notably the 1M SF First Colony Mall in Sugar Land, TX. Hines is still aiming for a new office development in Atlanta with Northpark in Sandy Springs (here), and also plans to put its Atlanta Financial Center on the sales block.