CBRE Drives Mass Turnaround in 'Silicon Peach'

ATLANTA—201 17th Street in Atlantic Station in Midtown Atlanta has traded hands. After a successful repositioning, CBRE Strategic Partners US Value 6, a fund sponsored by CBRE Global Investors, sold the office building. Financial terms of the deal were not disclosed.

This deal is a model in the Atlanta market. CBRE's business plan execution saw a massive occupancy increase at the 17-story office building. Since acquiring the asset in 2012 at 48% occupancy, CBRE has raised the bar to 91%.

“Midtown is the epicenter of technology and creative business in Atlanta,” says John Gilb, principal of CBRE Strategic Partners US. “But beyond offering a prime location at Atlantic Station, we have focused on making this space even more desirable by anticipating and accommodating tenants' needs and creating a pre-eminent environment for innovation that helps tenants attract and retain young professionals.”

Both the CBRE Strategic Partners U.S. Value 6 and CBRE Strategic Partners Opportunity 5 funds own other buildings within Atlantic Station. The firm's stakes include another office building, a parking garage and a majority ownership stake in the Atlantic Town Center retail centerpiece.

As part of its repositioning strategy at Atlantic Station, CBRE Global Investors has leveraged the latest technology to enhance the experience of retail guests, office workers and residents. This is a good move, considering reports of Atlanta emerging as a true tech hub.

According to CBRE, technology companies migrating to Atlantic Station account for most of the newly added tenants at 201 17th Street as the area is increasingly gaining a reputation as “Silicon Peach.” The fund decided to sell the property to benefit its investor clients by taking advantage of strong institutional interest in core office product in Atlanta.

“There is strong momentum in Midtown as a destination for companies seeking an urban, infill, mixed- use environment that helps attract Millennials,” Gilb says. “This is resulting in a huge influx of tech tenants. With the completion of our value-added strategy, this was the optimal time to sell to an investor who was interested in what we have transformed into a core asset.”