171 17th St To Sell For A Loss?
JPMorgan has put its trophy Atlantic Station tower on the market and could sell it for a loss.
We learned that JPMorgan has put 171 17th St up for sale, the 509k SF Wells Fargo tower at Atlantic Station. Sources tell us JPMorgan is marketing it at around $255 SF to $260/SF, which could have the institutional investor see prices top $132M. But that's sharply lower for the record pricing JPMorgan paid for 171 17th back in 2005. Then it made headlines by buying the tower from AIG Global Real Estate for $163M, or $320/SF. Back then, the only office transaction to have surpassed that was $343/SF that TIAA-CREF paid for The Pinnacle. (To be fair, we were all doing crazy things in 2005, just look at pictures of your hair.)
Sources say Eastdil Secured has been tapped to sell it. We reached out to the firm, but did not get comments by press time. It's unclear why JPMorgan is willing to unload 171 17th at a loss, and sources tell us the listing price is still $100/SF below replacement costs. And the sale comes at a time when investors are bullish on Atlanta again, with the potential for record pricing to come with the sale of 3630 Peachtree, which we reported could be acquired by Heitman for an all-time high of $380/SF.