ATLANTA-The large office lease signed last month by fashion retailer Spanx for its corporate headquarters is just another sign that the Buckhead market is on the mend. However, to get the deal done, the developer had to go back to the drawing board and redesign the building.
In June, Spanx signed an 11-year lease to occupy 86,000 square feet of office space in a three-story building now under construction by OliverMcMillan of San Diego. The office building is part of the Buckhead Atlanta mixed-use project that had been in mothballs for about five years. To close on the Spanx deal, officials with OliverMcMillan relate that they had to add a rooftop garden and loft layout to its building, according to the Wall Street Journal.
Commenting on the deal, Morgan Dene Oliver, chief executive of OliverMcMillan, says having to redesign the project’s office building to include a third story is “the kind of complication you want.”
Since taking control of the eight-acre property, OliverMcMillan has leased more than 60% of the 300,000 square feet of retail space in the project in addition to the Spanx transaction, which accounts for a majority of the planned 125,000 square feet of office space. The pace of pre-leasing at the project helped the developer secure a $167-million construction loan earlier this month from a group led by PNC Bank NA. See story in the Wall Street Journal.