Columbia Property Trust Sells Atlanta Office Complex to Starwood Capital for $228M

ATLANTA—Columbia Property Trust, Inc. is close to exiting the Atlanta office market with the sale of its fully-leased One and Three Glenlake Parkway office complex here for $227.5 million.

Commercial brokerage firm CBRE reports that an affiliate of Starwood Capital Group of Miami Beach, FL acquired the property.

The Atlanta-based REIT completed a significant repositioning of the 711,000-square-foot campus located in Atlanta’s Central Perimeter submarket in advance of the sale. Those efforts helped drive 460,000 square feet of leasing at the property since early 2017, replacing the original anchor tenant with no downtime and returning the full property to 100% leased. Columbia acquired One and Three Glenlake in 2003 and 2008, respectively.

“With Columbia’s portfolio now focused in New York, San Francisco and Washington, D.C., we are completing our established plans to exit other markets,” says Nelson Mills, CEO of Columbia. “Our successful leasing of the Glenlake campus has optimally positioned the property for sale.”

According to Columbia’s website, the multi-tenanted building One Glenlake features a newly renovated lobby, fitness center, café and conference center. Those amenities and the location have helped to drive more than 300,000 square feet of recent leasing at the campus, including the recent completion of a full-building, 13-year lease at building Three as the new headquarters of Arby’s Restaurant Group Inc., a subsidiary of Inspire Brands.

In addition to Inspire Brands, Glenlake also hosts the corporate headquarters for Cotiviti, strategic regional locations for Oracle and Comcast, and one of the newest SPACES co-working locations by Regus.

Columbia put the One and Three Glenlake complex, as well as its 955,000-square-foot Lindberg Center property in Atlanta on the market for sale, according to a report in the Atlanta Business Chronicle. The newspaper reported back in October 2018 that CBRE was representing Columbia Property Trust in the sale of One and Three Glenlake and Cushman & Wakefield was marketing the Lindberg Center property, which is fully leased to AT&T until 2021. The connected twin 14-story office buildings stand over the Lindbergh Station on MARTA and anchor Lindbergh Center, a 47-acre live/work/play development at Piedmont Road and Lindbergh Drive.

CBRE’s Will Yowell, Justin Parsonnet, Jay O’Meara, and Ryan Reethof represented Columbia Property Trust in the transaction.

“Glenlake One & Three is an institutional-quality asset with long-term stability, located the core of Central Perimeter,” says Yowell, vice chairman at CBRE. “We had a strong market response to this offering with interest from over 120 qualified investors, including new-to-market and foreign capital.”

Columbia Property Trust made news last month when the firm, along with partner Normandy Real Estate Partners LLC entered an agreement to purchase 250 Church St. a 235,000-square-foot,16-story office building in the TriBeCa neighborhood of Manhattan for a reported purchase price of $205 million.