Tishman Speyer Selling Colony Square
It was a long and winding road for Tishman Speyer's Colony Square. Now the firm is putting one of Atlanta's first mixed-use projects on the market.
Tishman Speyer has tapped Eastdil Secured to sell the 955,400 SF dual office tower complex (which also includes the 140k SF Colony Square Mall). The W Hotel (formerly a Sheraton) is not part of the package, although the hotel is physically connected to the project. While Tishman officials confirmed the sale, they declined to elaborate on plans. But sources say the firm is eyeing the $160M mark from a buyer, which would push this into the high $160/SF realm.
At that price, an investor could enter the coveted Midtown market—especially at the prime intersection of Peachtree and 14th streets—at a discount compared to other projects in the area. Sources say Eastdil has been confronted with a lot of interest in Colony Square, and expects to close by year's end on the 82% leased complex. Tishman managed to turn Colony Square around, retiring its $116M CMBS loan with a capital infusion with Rialto Capital Management, as well as renovation of the project, including a $5M infusion in the mall.
The moves have seemed to work. Recently, as we first reported, Tishman secured a 130k SF deal with Norfolk Southern as it restacks its presence at Promenade. And most recently, Charlotte-based 5Church Restaurant was reported to have tied up the former Shout! space at Colony Square Mall for a new dining concept.