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ATLANTA-Hanover Insurance Group Inc. has signed a 35,642-square-foot lease at AEW Capital Management’s 400 Northpark building at 1000 Abernathy Road. The seven-year deal is valued at approximately $5 million, according to Steve Morgan, senior vice president with Grubb & Ellis Co., which handled the transaction on behalf of the tenant.

Worcester, MA-based Hanover will relocate its regional office to the building from a location that it held within the Embassy Row Business Park right next door, says Morgan. The insurance group was attracted to the space because of its amenities, including two conference rooms, two restaurants, a coffee shop and car wash, all located within the three-building, 1.5 million-square-foot Northpark complex. The tenant’s new location also features a MARTA station adjacent to the building. “Because of market conditions the tenant was able to upgrade to a class A facility with more amenities and a higher quality at a very small premium,” says Morgan.

Boston-based AEW Capital owns all three buildings within the park, which was originally developed by Portman Barry Investments in 1986. The property within the Central Perimeter submarket is currently 90% leased, says CB Richard Ellis’ Richard Nash, who represented the landlord in the transaction. The newly leased space was previously occupied by Michigan-based Ford Motor Credit, which did away with its Atlanta space, Nash tells GlobeSt.com.

“This deal is very significant by simple virtue that there are no big deals being done right now in suburban Atlanta,” he says. “This submarket has the largest concentration of Fortune 500 companies in Atlanta, so our market is corporate America, which is currently in a recession. These firms will not move unless they absolutely have to, and when they do move it’s for a long-term lease and they want to make sure every cost to move is paid for by the landlord.”

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