A San Francisco-based commercial real estate investor with a history of office turnarounds in Atlanta is reportedly close to buying an empty Midtown tower.
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Shorenstein Properties is under contract to acquire 14th + Spring, the 12-story, 324K SF office tower in the heart of Midtown for somewhere in the low $200/SF range, the Atlanta Business Chronicle reports, citing unnamed sources. In turn, Shorenstein expects to invest $100/SF to add amenities and improvements aimed to help make the location compelling for potential tenants, the ABC reported.
The pending sale comes two months after 14th + Spring’s developer, Greenstone Properties, and its joint venture partner, Goldman Sachs, tapped JLL to market the tower that was delivered in 2022 and has remained vacant since.
Calls to Greenstone weren't returned as of press time. Shorenstein Chief Operating Officer Tony Calabrese declined to comment.
Greenstone and Goldman have a $75.8M loan from Santander Bank tied to the property that was initially set to mature on Dec. 27, but the owners secured a two-year extension, Bisnow previously reported.
Greenstone Partner De Little told Bisnow that 14th + Spring may be the last office building he develops for the firm he co-founded in 2005, given the current state of capital markets and attitude toward office development. Little helped to build 14M SF of new office at Greenstone throughout the Southeast, including Mansell Overlook in Alpharetta, Newell Rubbermaid's headquarters in Central Perimeter and the 29-story Pinnacle at Symphony Place in Nashville.
"Guys like us, who made our living on office, we've got to find something else," Little said in October. "I do think there will be office buildings built again, but I’m 63 years old. The chance for me to do another spec office building in the next seven years, right now those prospects don’t look very bright."
Shorenstein is no stranger to the Atlanta market. In 2016, it purchased the iconic Bank of America Plaza tower from special servicer CWCapital Asset Management for a little more than $200M, a far cry from the $363M in CMBS loans that previously secured the 55-story skyscraper.
Last year, Shorenstein sold Bank of America Plaza to CP Group and its partner, HPS Investment Partners, for some $380M, the ABC reported. Shorenstein also previously owned and sold The Palisades Office Park and 1155 Perimeter Center West in Central Perimeter.
