A San Francisco commercial real estate investor with a history in property turnarounds appears to have landed its debut tenant at the empty 14th + Spring tower in Midtown.
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Engineering firm HNTB is building out nearly 70K SF in three suites at the 324K SF building at 1150 Spring St. , according to a permit filed with the City of Atlanta’s planning department.
Shorenstein Properties purchased 14th + Spring in July from Greenstone Properties and Goldman Sachs for a price reported to be in the low $200 per SF range, the Atlanta Business Chronicle previously reported.
The property has been completely empty since Greenstone delivered the 12-story tower in 2022. Fulton County records have yet to reflect an official purchase price, but the county valued the building at $64M this year.
“Having acquired the property at an attractive basis, we look forward to offering future tenants an exceptional value proposition for such a high-quality property,” Shorenstein Vice President Claude Esposito said in a July press release.
Design firm DLR Group filed the application to renovate suites 1000, 1100 and 1200 in the office building — likely the top three floors — for a total of $11M of interior work that includes new walls, ceilings, finishes, lighting and furnishings, according to the permit.
HNTB, which is based in Kansas City, Missouri, occupies 52K SF at 191 Peachtree Tower with a lease that expired in August, according to Sara Barnes, the market intelligence manager for Avison Young in Atlanta.
Officials with HNTB and Shorenstein didn't return calls seeking comment.
CBRE Senior Vice Presidents Nicole Goldsmith and Kyle Kenyon and Executive Vice President Jeff Keppen were tapped by Shorenstein to lease the building. None of them could be reached for comment.
Savills Vice Chairman Chris White, Managing Director Tom Kubis and Vice Chairman Dina Zivislak represented HNTB.
While terms of the lease were not disclosed, asking rents for 14th + Spring on a listing on the VTS marketplace were $44 per SF, placing it just above the Midtown average of $43.85 but below the trophy office average of $45 per SF, according to data from Avison Young. Landlords are giving tenants an average of about 1.5 months of free rent for every year of their lease.
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