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The city of Atlanta and Fulton County may be on the path to jointly purchase the former CNN Center from CP Group.
The Atlanta Fulton County Recreation Authority is exploring purchasing The Center, the name for the redevelopment of the space, for $200M, Atlanta News First reported.
The news outlet cited a memorandum it obtained through an open records request.
The recreation authority said it would purchase the property to control a key Downtown Atlanta parcel and to keep the former CNN Center “from falling into a state of disrepair,” the memo stated.
Neither CP Group nor the authority returned a message seeking comment from Bisnow.
The authority, which also owns State Farm Arena and Zoo Atlanta, is proposing to issue tax-exempt senior revenue bonds to purchase the 1.2M SF property. CP Group would contribute $200M to $300M in equity to fund renovation and repurposing of the space, ANF reported.
According to the memo written by AFCRA Executive Director Kerry Stewart, the bonds would be secured by future revenues on the project, Atlanta News First reported. The authority would get a guaranteed annual revenue and a portion of backend profits.
The authority’s proposal would also seek an agreement with the Westside Tax Allocation District board to earmark all new tax revenue generated from the project to help cover the debt service on the bonds.
CP Group would continue to operate the property under the plan.
Fulton County Board of Commissioners Chairman Robb Pitts expressed surprise about the project when reached for comment by ANF.
CP Group, in a joint venture with Rialto Capital, purchased the then-CNN Center from communications giant AT&T for more than $144M in 2021. Three years later, CNN moved its broadcasting to Midtown from the property.
The Boca Raton-based developer has since made inroads to reinvent The Center as a mixed-use hub, with plans to open a food hall in May. CP Group told Rough Draft Atlanta future phases of redevelopment there could include apartments and hotel rooms.
It was unclear what plans the authority would have for The Center if it were to acquire the project.
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