Midtown Plaza Close to Sale, Tower Place 100 Hits Market
Tishman Speyer is getting closer to selling a prized Midtown asset--its two-tower, 500k SF complex at 17th and Peachtree streets.
It tapped Eastdil Secured late last year to bring the buildings to market. Tishman brought in Rialto Capital Management to restructure the CMBS loan tied to both Midtown Plaza and Colony Square back in 2012. At the time, Midtown Plaza's maturity on the original $65M loan was extended. Sources with Tishman and Eastdil did not return calls seeking comment, but investors familiar with the offering say they expect the building to trade for approximately $95M, well above the original CMBS loan amount.
Tishman is currently developing Three Alliance Center in Buckhead on spec (pictured), and the past year has secured more than 100k SF of new and renewed leases at Midtown Plaza, including Purchasing Power's 46k SF deal. Whoever ends up buying the project could have a solid value-add play on their hands, through renovations and pushing rents up to current market-rates, sources say. The complex has two modified CMBS loans remaining on it--still totaling $65M--that mature in October of next year, according to Trepp.
Eastdil's local office also just put up Tower Place 100 for Deutsche Asset & Wealth Management, with pricing that could see the tower and its retail component trade for $190M. And sources tell us, again, this could be a value-add play: the 614k SF, 29-story office tower is more than 95% leased but has in-place rents that are below the market's current upswing. Tower Walk, the retail component of Tower Place 100, includes 163k SF of retail that includes the AMC theater. But as Real Estate Alert reports, the space, which could be sold independent of the office, can be converted to multifamily.