ATLANTA — Jamestown has announced it will sell the 620,000-square-foot 999 Peachtree, an office tower located in Atlanta’s Midtown submarket. Jamestown has engaged Eastdil Secured to represent the company in the sale, which it has targeted at $160 million. Jamestown seeks a capitalization rate in the low-to-mid 6 percent range for the trophy asset.
Jamestown acquired the property in 2007 from Childress Klein Properties for $127 million, and has added new tenants such as Gensler and Oxford Industries, as well as retail brands Clothing Warehouse and En Paris. 999 Peachtree is 94 percent leased. The building also includes restaurant Empire State South.
The property earned the designation of LEED Silver for existing buildings in 2009 after Jamestown implemented various sustainability initiatives, including water reclamation systems, a bike-share program and a partnership with a local community-sponsored agriculture program.
“Jamestown has committed significant energy and resources to 999 Peachtree, and we are proud of the success it has become today,” says Matt Bronfman, CEO of Jamestown. “Our success in restoring the asset to true Class A status, combined with the strong capital markets environment for core assets, makes it an ideal time for us to bring this property to market.”
According to Cassidy Turley, the office vacancy rate in Midtown in the first quarter of 2012 was 22.2 percent, down from 23.5 percent in the fourth quarter of 2011. Additionally, Midtown posted positive absorption in the first quarter of 185,453 square feet.
Since the company was founded in 1983, Jamestown has generated approximately $8 billion in strategic investments. The company focuses on core, core-plus and opportunistic funds in two primary markets, 24-hour cities and Sunbelt territories.
— Savannah Duncan