Originally published on June 24, 2013 at 1:52 p.m.
Highwoods Properties recently acquired One Alliance Center, prime Buckhead office space, and now owns the pair of Alliance Center office towers.
The company acquired Two Alliance Center in September 2012, and is now the sole owner of the towers' combined 1 million square feet of prime Buckhead office space.
The cost of the purchase of One Alliance Center is $143.3 million, which includes the purchase price plus $2.9 million of planned near-term building
improvements and $0.4 million of future tenant improvements committed
under existing leases, according to an Alliance Center presentation reported from Benzinga.
Right now, One Alliance Center is 67 percent leased.
Ed Fritsch, president and chief executive officer of Highwoods, stated in the report, "This is a rapidly tightening submarket and we forecast leasing at One
Alliance to exceed 93% within three years. In addition, we see
opportunities to "Highwoodtize" the property and expect to garner
operating and leasing synergies by owning both Alliance Center towers
through shared parking, shared amenities, shared vendor agreements and
customer expansions to name a few."
Real estate firm Tishman Speyer returned One Alliance Center to its lender in March after acquiring it in 2007.
The office tower had a 22 percent vacancy rate, higher than the average for a Buckhead luxury office tower and had a "troubled" $165 million loan as well, according to recent reports.
The firm was unable to reach an agreement to retain ownership, as
the tower's debt continued to mount with its decreasing property value
and rental income.
However, the firm was expected to build a third tower, Three Alliance Center. There have not been updates or details provided about the possible third tower.