By Rachel Tobin
The Atlanta Journal-Constitution
Buckhead’s tallest building, the 50-story Sovereign tower, is fetching the highest price of any property of its type in Atlanta all year.
Phil Skinner, firstname.lastname@example.org The Sovereign building towers over other Buckhead buildings.
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Parkway Properties, an investment firm based in Jackson, Miss., said it has a contract to buy the office and retail portion of the building at 3344 Peachtree Road for $167.3 million. Closing is expected in January.
The Class A offices, which are 93 percent leased, include tenants such as real estate services firm Jones Lang LaSalle; law firms Weinberg, Wheeler, Hudgins Gunn & Dial and Littler Mendelson and Hodges Ward Elliott; undergarment maker SPANX; and Fifth Third Bank.
The Buckhead Club, Barclays and Bistro Niko also are in the building.
The tower, whose swooping, angular profile cuts a distinctive figure on the Buckhead skyline, also has 82 high-end condos that are not included in the sale.
Parkway Properties is an investor in the nearby One Capital City Plaza building.
Alan Wexler, of the real estate research firm DataBank Atlanta, calculated the sale amounts to about $346 per square foot, not counting the condos.
“This is the highest price we’ve recorded all year,” he said. He believes there was as much as $250 million invested in the tower, which was finished in 2008. He believes the purchase price comes close to covering what was invested.
“It’s a Class A, very well leased building in a great location. It’s a big deal,” he said.
Regents Partners developed the building, which was designed by Smallwood, Reynolds, Stewart, Stewart.
Could this be the sign that real estate is on the climb upward! Let’s hope so!