A representative for Behringer Harvard tells GlobeSt.com the deal closed April 19. Area brokers intimate with the class A office market in the Cumberland-Galleries area tell GlobeSt.com the two buildings have been on the market for the past five months at a speculated combined asking price of $110 million or about $170 per sf.
Robert M. Behringer, chairman and CEO of Behringer Harvard, says his company acquired Paces West "at a significant discount to replacement cost." He says the acquisition "should allow our investors to capitalize on attractive current yields and potentially benefit from improving fundamentals in the Atlanta market."
Behringer describes Paces West as "a core asset with a strong, multi-tenant rent roll located on the main east-west traffic artery of prestigious Buckhead, one of Atlanta's most important business districts." He says five major tenants occupy 51% of the total rentable space."
The 14-story, 274,744-sf One Paces West, built in 1987, is 91% leased, Downtown office brokers tell GlobeSt.com. The 17-story, 371,727-sf Two Paces West is about 75% leased. The 9.22-acre land component of the property has been on the market for 18 months; the office portion since December 2005, according to area brokers.
Trammell Crow Co. will continue to manage both buildings, a Behringer Harvard representative tells GlobeSt.com. Name tenants at Paces West are Piedmont Hospital, Docucorp and BT Americas, a subsidiary of BT Group. Two parking garages totaling 1,500 spaces service the two buildings.
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