Tampa's Hogan Group Plans New Tower

The estimated $43 million, class A, 11-story, 285,000-sf structure would compete directly with two other major developers. They are locally based Pope & Land Enterprises Inc. and a joint venture of Jones Lang LaSalle and Transwestern Investment Co., both of Chicago.

Pope & Land plans to erect a 350,000-sf building at an estimated hard construction cost of $53 million at the 18-acre One Glenlake site at GA 400 and Abernathy Road. Jones Lang LaSalle and Transwestern are marketing an 11-story, 275,000-sf, spec tower at Glenridge Point.

The three towers, if completed, would add 910,000 sf of new class A product to the 21.9 milion-sf Interstate 285-GA 400 submarket, according to the latest research from Atlanta-based Richard Bowers & Co. The class A space in this submarket totals 13.4 million with an occupancy rate of 91.06% and an average asking rent of $24.62 per sf.

Area brokers tell GlobeSt.com developers continue to be attracted to this submarket by access from GA 400, the Glenridge Connector and I-285. There are also two new MARTA stations and several name shopping centers in the area. Corporate tenants in the submarket are Coca-Cola Fountain, UPS, Cingular Wireless and HomeBanc Mortgage Co.

But residential activists concerned with mounting traffic and pollution oppose most new office construction. Their opposition caused Cousins Properties and Northside Hospital, for example, to back out of plans to build three office towers on the Glenridge Connector, east of GA 400. But traffic on the west side of GA 400 in suburban Sandy Springs isn't critical yet, brokers say.

Hogan's Glenridge Highlands One, a 12-story, 330,000-sf, 100%-leased structure was built in 1998 at an estimated hard construction cost of $50 million. The building was sold in 2000 for $63.7 million or $193 per sf.

Glenridge Highlands Two, a 19-story, 98% leased, 436,000-sf tower completed in 2000 at an estimated hard construction cost of $65 million, is on the selling block. Hogan hasn't disclosed an asking price but area brokers familiar with the asset tell GlobeSt.com the developer anticipates getting about $200 per sf or $87 million.