ATLANTA—An area of Atlanta that's rife withmedical tenants and providers supposedly lacks an adequate amountof “Class A” medical office space, according to a partnershipplanning to develop a new outpatient healthcare facility nearAtlanta's Piedmont Hospital.

|

The joint venture (JV) partnership of CornerstoneDevelopment Partners and Stein InvestmentGroup, both of Atlanta, has proposed a $65 million,seven-story, 161,000 square foot medical office building (MOB) andretail project for a site near the south end of the Piedmontcampus.

|

The planned building, dubbed Cornerstone MedicalCenter, would be a redevelopment of four parcels totaling3.5 acres at 1895 Peachtree Rd. N.E. in Atlanta's Buckheaddistrict. The Atlanta Zoning Commission recentlyapproved the final site plans and zoning conditions for the site,which is east of the intersection of Peachtree and Collier RoadNorthwest.

|

Cornerstone Medical Center would include 16,000 square feet ofstreet-level retail and restaurant space, including a Chick-fil-Arestaurant, topped by 145,000 square feet of medical office spacewith 22,300 square foot floor plates. The facility would alsoinclude four levels of below-grade parking, including a secure“doctors-only” area with direct, private elevator access to themedical suites.

|

As of recent weeks, the partnership had not announced whether ithas lined up tenants, such as an anchor tenant, for the medicalspace in the building.

|

“We have gone through great lengths to research and understandthe needs of the medical community as well as their patients sothat we can deliver a sophisticated, yet functional space thatraises the bar for future developments,” Cornerstone PresidentRobert F. Kern said.

|

“This combined, four-parcel site is a prime commercial locationthat has been neglected for years – if not decades – making this areal opportunity to improve the neighborhood while offering amuch-needed medical office development,” Cornerstone VPWesley DeFoor added.

|

Cornerstone has been working on the project – site assembly,city approvals and addressing neighborhood concerns – since 2012.Early this year, the firm formed the JV with Stein, which hasdeveloped several boutique retail projects in the Atlanta area.

|

The Cornerstone-Stein JV says it expects to break ground thissummer and complete the job by 2015.

|

Cone Middour Partners is handling leasing, andthe published lease rate for the medical space is $27 per squarefoot (PSF), triple net.

|

But the Cornerstone-Stein JV is not the only developer seekingClass A medical office tenants in Buckhead.

|

Only about three blocks to the north, near the north end of thePiedmont Hospital campus, Parkside Partners, inpartnership with Georgia Hand, Shoulder &Elbow, last year replaced a TGI Friday's restaurant withthe five-story, 47,965 square foot 2061 Peachtree. That medicaloffice building (MOB) is 100 percent leased and Parkside is seekingtenants for its five-story, 57,855 square foot Building Two.

|

Parkside is handling leasing, and the published lease rate is$23.50 PSF.

|

According to local media reports, both developers say they arein talks with prospective tenants for their respective buildings,but no names have been disclosed.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.