Piedmont Acquires Galleria 100 Office Building in Atlanta for $95.1M
ATLANTA — Piedmont Office Realty Trust Inc. (NYSE: PDM) has acquired Galleria 100, an 18-story office building located in Atlanta, for $95.1 million. The sale includes a 1.5-acre parcel for future development.
Galleria 100, which spans approximately 414,000 square feet, was 91 percent leased at the time of sale. The property is located within The Galleria mixed-use development on the city’s northwest side. The property is connected via footbridge to the Atlanta Braves’ SunTrust Park and the surrounding entertainment destination known as The Battery.
Piedmont already owns two office buildings that are adjacent to the acquired property within The Galleria, an 86-acre development with office and retail uses, as well as a hotel and convention center. Tenants at Galleria 100 include insurance giant Aflac, law firm Freeman Mathis & Gary and private dining venue The Georgian Club.
With this acquisition, Piedmont, which is based in the northern Atlanta suburb of Johns Creek, now owns roughly 1.3 million square feet of office product within this submarket. The company’s total portfolio consists of nearly 17 million square feet of office space across eight major markets, holdings that are valued at roughly $5 billion.
“This transaction underscores our overall strategy of acquiring and concentrating properties in strategic submarkets, which deliver distinctive, vibrant environments for our tenants and compelling return metrics for our shareholders,” says Brent Smith, president and chief investment office at Piedmont.
Will Yowell, Jay O’Meara, Justin Parsonnet and Ryan Reeth of CBRE represented the seller, a partnership between development firm Childress Klein and Chicago-based WHI Real Estate Partners, in the transaction. The companies acquired the building in 2017.
Don Childress, who currently serves as senior managing director at Childress Klein, originally developed 100 Galleria in 1982 while working for Trammell Crow Co. The seller recently implemented a capital improvement program that delivered a new lobby, café and tenant lounge, as well as upgrades to common areas and elevator cabs.
Piedmont’s stock price opened at $20.55 per share on Monday, May 13, up from $18.64 per share a year ago.
— Taylor Williams