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ATLANTA-They may not get a record $300 to $350 per sf for their class A, two-building Lakeside Commons campus in the strong Central Perimeter office market, but local developers Dwight Bell and Jeff Tucker are confident the property will generate a healthy return on their six-year-old investment.

Taking advantage of a red-hot investment office building market here, Bell and Tucker, principals in nine-year-old BOSS Properties LLC, are soliciting sealed bids on their two-building, 513,057-sf campus in the 900 block of Hammond Drive.

They bought the buildings in 1998 for $81.5 million or $158.85 per sf. Local brokers dealing in the Central Perimeter submarket tell GlobeSt.com. the developers should get at least double that amount today. “We’re going to let the market determine the price through a competitive bid process,” Bell says.

He adds, “Given the investor interest in Atlanta for prime properties, we’ve made the decision to take the property to the market. Lakeside Commons is in pristine condition and has several blue-chip tenants.”

Among them are Porsche Cars North America, Church’s Chicken, National Bank of Commerce, Reebok, UnumProvident and Showtime Networks. The 11-story, 221,037-sf One Lakeside Commons opened in 1985. The 13-story, 292,000-sf Two Lakeside Commons was completed in 1997. A Porsche car adorns the entranceway to Two Lakeside Commons where the Germany-based manufacturer leases 55,000 sf. BOSS also owns the 17-year-old, 305,480-sf Pinnacle Tower at 400 Interstate North Parkway in the city’s northwest submarket. That building is not for sale.

Recent sales of class A office buildings in Atlanta have set records on a price-per-sf basis, according to GlobeSt.com research.

For example, in the highest per-sf-price ever recorded for a metro area office building, New York-based TIAA-CREF paid Cousins Properties Inc. of Atlanta and a Maryland-based affiliate of Stonebridge Associates $145 million, or $342.78 per sf, for the six-year-old, 98%-leased, 423,000-sf Pinnacle building in the Buckhead district.

TIAA-CREF also bought the adjacent Two Live Oak office structure at the same time in August from Cousins and its partner for $55 million or $197 per sf, as GlobeSt.com previously reported.

In June of this year, Wells Real Estate Investment Trust purchased one-year-old, 14-story, 353,000-sf One Glenlake office building in suburban Sandy Ridge from Atlanta-based Pope & Land Enterprises Inc. and Dallas-based Granite Properties Inc. for $82 million or $232.29 per sf.

In April, Parkway Properties of Jackson, MS paid Rubenstein Cos. of Philadelphia $78.6 million, or $192 per sf, for the 92%-leased, 410,000-sf Capital City Plaza on Peachtree Road in Buckhead.

Also in April, McLean Office Center Ltd. of Washington, DC paid locally based K&K Holdings LLC $40 million, or $158.50 per sf, for the 252,960-sf Parkside Terrace East and Parkside Terrace West 19-acre office complex at 3780 Mansell Road in suburban Alpharetta in the North Fulton County submarket.

The two largest sales in 2003 involved Koger Equity Inc. of Boca Raton, FL and Toronto-based Manulife Financial. Koger paid locally based Pope and Land Enterprises $116.5 million, or $232 per sf, for the 502,000-sf, 23-story, 86%-leased Atlantic Center Plaza at 14th and West Peachtree streets in Midtown. Manulife Financial paid Trammell Crow Co. and Real Estate Capital Partners $118 million, or $224 per sf, for the 23-story, 527,000-sf Proscenium building at 1170 Peachtree St., Downtown.

Another big 2003 office building transaction was Jacksonville-based St. Joe Co.’s purchase of the three-building, 465,000-sf Windward portfolio from locally based Holder Properties Inc. for $70 million or $150 per sf.

Bell and Tucker have retained the Atlanta office of Cushman & Wakefield of Georgia Inc. to market Lakeside Commons.

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