Sprint Rents 100,000 SF of Telecom Space

Officials at Core Location and MetroNexus, joint developers of the $80 million Midtown telecom hotel, wouldn't disclose lease terms to GlobeSt.com, but area brokers familiar with the deal tell GlobeSt.com the lease is for at least 10 years with an estimated aggregate value of $20 million.

Average asking rents at the former Sears Roebuck & Co. building are $20 per sf. Midtown average rents are $21.85 per sf.

Sprint's move into the Midtown telecom hotel comes a week after the company's publicly traded FON Group reported disappointed first quarter financials. The FON Group, traded on the New York Stock Exchange, comprises Sprint's global markets segment, local telecommunications division and product distribution and directory publishing business.

The FON Group posted revenue of $4.36 million, down 1% compared to $4.4 billion in the same period a year ago. Diluted earnings per share from continuing operations were 36 cents versus 50 cents a year ago.

Net income was $315 million, down from $445 million in the same period last year. The $315 million excluded a $675 million or 75 cents-a-share gain from the sale of Sprint's investment in Global One.

Operating income decreased 30% to $532 million from $758 million last year. Operating cash flows were $1.12 billion, down 14% from $1.3 billion a year ago.

Metro Technology Center Atlanta was born in 1954 as a Sears retail building housing an estimated 100,000-sf. Additional space was added in 1965.