AT&T Looking To Sell 13-Building Office Portfolio In Huge Sale-Leaseback Deal

444 Michigan Ave. In Detroit, Which Houses At&T.

AT&T is looking to monetize a substantial chunk of its office assets.

The telecommunications giant is in talks with multiple potential buyers for a 13-property portfolio of office buildings it owns and occupies across nine cities, CoStar reports. The properties, collectively dubbed by AT&T as the Central Office Portfolio, total about 3.6M SF and are being marketed for sale by JLL.

As part of the deal AT&T is offering, the company is committing to lease back 43% of the portfolio's total square footage as a way to guarantee a revenue stream for the next owner, a spokesperson told CoStar. AT&T would sign a 20-year lease for approximately 1.5M SF at $10.12 per SF in the first year, with 2.5% increases every year after.

The properties are as follow in descending order of size, as reported by CoStar:

  • 444 Michigan Ave. in Detroit, 560K SF

  • 111 North Fourth St. in Columbus, Ohio, 520K SF

  • 1365 Cass Ave. in Detroit, 425K SF

  • 3303 Weslayan St. in the Greenway Plaza development district of Houston, 403K SF

  • 635 Grant St. in Pittsburgh, 367K SF

  • 722/740 North Broadway St. in Milwaukee, 282K SF

  • 445 State St. in Detroit, 241K SF

  • 629 West Fifth St. in Winston-Salem, North Carolina, 218K SF

  • 9403 Queens Blvd. in the Rego Park neighborhood of Queens, 195K SF

  • 1444 Jericho Turnpike in Huntington, a town in Suffolk County on New York's Long Island, 136K SF

  • 2400 South Westmoreland Road in Dallas, 89K SF

  • 36 South Fairview Ave. in the Chicago suburb of Park Ridge, Illinois, 85K SF

  • 6800 Harding Ave. in Miami Beach, 68K SF

AT&T has been selling off properties or converting ownership to tenancy across the country since its acquisition of Time Warner, for which it still carries a $150M debt obligation, CoStar reports.

Among the largest associated deals came from its newly created subsidiary, WarnerMedia, which completed a sale-leaseback deal with Related Cos. last year for its office condo at 30 Hudson Yards in New York for $2.2B. AT&T also sold its own headquarters in Dallas in 2018, and has been consolidating office space in areas like Atlanta.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Cross Ocean Partners, Fuller Realty Acquire 829K SF Houston Office Campus

How Integrated Infrastructure Can Help AI Data Centers Deploy Faster, Build Smarter

Nvidia Buys Stake In Data Center Power Company

Trammell Crow Starts Phase Of 2M SF Industrial Park: The Houston Deal Sheet

Invesco Cuts Fees, Adds Incentives To Quell Fund Redemption Requests

Investors Anchor Big Capital Into Marinas, Betting On Shallow Supply

Developers Eyeing Dallas' 50-Mile Trails Loop For Uptown-Like Opportunities

Oncology Company Expands Footprint At Hines' Life Sciences Campus

NYC Office Investor Warns It Could Go Under As Defaults Pile Up

Deutsche Bank Takes 5 Floors At Oaktree And Quadrant's Canary Wharf Scheme

Nike Closes 15 Stores Amid Tumultuous Year

Large Commercial Real Estate Sales Up 30% Despite Economic Headwinds