Piedmont Office Realty Trust Buys Two Office Towers in Atlanta’s Cumberland-Galleria Area for $231M
ATLANTA — Piedmont Office Realty Trust Inc. (NYSE: PDM) has purchased the remainder of Atlanta Galleria Office Park in northwest Atlanta. The $231 million acquisition consolidates Atlanta Galleria’s multi-tenant office buildings and 6,000-space structured parking facilities under a single owner for the first time.
Situated in the city’s Cumberland-Galleria submarket near SunTrust Park and The Battery Atlanta, the acquisition comprises Galleria 400 and Galleria 600, two office towers totaling approximately 860,000 square feet. The purchase also included an adjacent 10.2-acre parcel entitled for 1 million square feet of additional development. The seller was undisclosed.
“When we acquired Galleria 300 in 2015, we boldly imagined the environment a single owner could create adjacent to the unique amenity set evolving in The Battery,” says Brent Smith, president and CEO of Piedmont Office Realty Trust. “Today, the first step of that vision becomes a reality and marks the beginning of Piedmont’s transformation of this prominent Atlanta mixed-use development.”
Piedmont Office Realty Trust purchased Galleria 100 and an additional 1.5-acre parcel in May for $95.1 million.
The company’s total investment in The Galleria is just under $500 million. The 2.1 million square feet of office space within the master-planned development is spread across five buildings and features three development sites. Tenants at Atlanta Galleria include the Institute of Nuclear Power Operations, The RADCO Cos., Balfour Beatty, McWhirter Realty Partners, Bridges & Dunn-Rankin LLP and Crim & Bassler.
Childress Klein Properties leases and manages Atlanta Galleria Office Park, according to the property website. The company is also currently developing an apartment community on the campus.
The Galleria has visibility from Interstates 75 and 285 and is situated near Cobb Galleria Centre, several hotels and restaurants, Cobb Energy Performing Arts Centre and Cumberland Mall.
Piedmont Office Realty Trust is an owner, manager, developer and operator of Class A office properties located primarily in select submarkets within eight major eastern U.S. office markets. The REIT’s $5 billion portfolio spans nearly 18 million square feet.
Piedmont Office Realty’s stock price closed on Monday, Aug. 26 at $19.89 per share, virtually unchanged from a year ago.
— John Nelson