Piedmont Office Buying Midtown's Iconic 999 Peachtree
One of Atlanta's largest office landlords is under contract to purchase Midtown's iconic 999 Peachtree.
Piedmont Office Realty Trust CEO Brent Smith confirmed to Bisnow that the REIT was under contract for the 28-story, 622K SF office tower at 10th and Peachtree streets from Franklin Street Properties for $223.9M.
“Until the transaction has closed, Piedmont cannot provide further comment,” Smith wrote in an email.
Franklin Street disclosed the pending sale to Piedmont Operating Partnership L.P. in a Securities and Exchange Commission filing Oct. 5, adding that the deal is scheduled to close in the fourth quarter of this year, pending due diligence.
Franklin Street purchased 999 Peachtree in 2013 from Jamestown for $157.9M. The sale comes on the heels of its disposition of One and Two Ravinia Drive in Central Perimeter and One Overton Park in Cumberland/Galleria to CP Group for $219.5M.
The selling spree has reduced Massachusetts-based Franklin Street's Atlanta portfolio to just 700 Satellite Place in Duluth and Pershing Park Plaza, the 160K SF office building situated at the split of Peachtree and West Peachtree streets in Midtown.
On the other side of the table, Piedmont continues to beef up its Atlanta holdings, now with a presence in Midtown Atlanta. Piedmont also owns the Galleria office park in Cumberland/Galleria, Glenridge Highlands One and Two as well as 1155 Perimeter Center West, all of which are in Central Perimeter, and The Medici Building off Northside Parkway.
Piedmont is executing on its plans to grow its holdings in the Sun Belt markets like Metro Atlanta while it has sold off some Gateway market properties; the firm was under contract to sell 225 and 235 Presidential Way in Boston after securing a long-term 440K SF renewal with Raytheon.
“As we've been doing over the last several years, we will continue to focus our portfolio expansion on Sun Belt markets,” Smith told analysts during a July 29 earnings call. “To that end, we're looking to recycle the Presidential Way proceeds into a strategic Sun Belt acquisition where we have nothing to announce at this time.”
Smith didn't respond to an email asking whether the Presidential Way proceeds were going toward 999 Peachtree.