The Power of Buckhead Compels Them
Late yesterday, Parkway Properties, which set records with its purchase of 3344 Peachtree, almost reached that record again. The company purchased One Buckhead Plaza, the 462k SF office tower towering above Buckhead Village, for $157M, or $340/SF--nearing its record per SF price of $344/SF it paid for the other Buckhead tower in 2011. Let's let Parkway's CEO Jim Heistand (on left at a recent event with Parkway's Mike Fransen) give the explanation for its buy: "The building is located at 'main and main' in one of the most highly amenitized submarkets in the southeastern United States. Upon closing of the acquisition, we will own approximately 10% of the Buckhead office market, which continues to command the highest rents in Atlanta. We believe that current in-place rents at One Buckhead Plaza are below market rates and we see a great opportunity to reposition the asset and unlock embedded growth."