| The median price/SF on deals this year is half of what it was at the peak of the market, according to CoStar Group. In September, the Campanile building in Midtown was auctioned to Dewberry Capital for $36M, or $80.60/SF, a slightly better price than reported bids, which were coming between $30M and $32M, about $68/SF. Wells Fargo foreclosed on the property this year, after originating a $98M loan so Transwestern could buy it in 2007 for $223/SF. The building is still only 14% leased—the largest tenant being Georgia's Own Credit Union. Asking lease rates on the vacant space are between $18/SF-$19/SF NNN, according to CoStar. Distress is still prevalent in Atlanta. Rubenstein Partners, which purchased 64 Perimeter Center East in a portfolio from Equity Office Partners in 2007, is reportedly putting the nearly empty 381k SF building on the market. After losing Philips Electronics as an anchor tenant, the office building is roughly 90% vacant (per CoStar). It will likely go for a fraction of its '07 sales price. More deals like this will likely pop up in the coming months as the markets work through distressed assets. |
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