CBRE Arranges sale of Atlanta’s Iconic Bank of America Plaza
March 9, 2022
Will Yowell, Jay O’Meara, Justin Parsonnet and Ryan Reethof with CBRE’s Capital Markets Institutional Properties represented the seller, San Francisco-based Shorenstein, in the transaction. Terms of the deal were not disclosed.
Bank of America Plaza, Atlanta’s tallest building, is located at 600 Peachtree Street NE and was acquired in a joint venture with funds managed by HPS Investment Partners, LLC. Built in 1992, the property underwent more than $20 million of capital improvements under the ownership of Shorenstein, including amenity upgrades, mechanical upgrades, garage maintenance and the construction of a new 1.2-acre urban park, which opened in January 2022.
“Bank of America Plaza is truly a trophy asset and an icon on Atlanta’s continually expanding skyline,” said Will Yowell, Vice Chairman at CBRE. “The transformation of this asset under Shorenstein’s ownership has been great to see firsthand and we were honored to have represented them in the sale of this world-class asset.”
The property was 66 percent leased as of January 1, 2022, with a weighted average lease term of 8.2 years. Its largest tenants include law firm Troutman Pepper Hamilton Sanders LLP and logistics firm Flexport. Since 2016, Bank of America Plaza has seen 1 million sq. ft. of leasing activity, including long-term renewals from two of its largest tenants. CBRE’s Jeff Keppen, Chris Port, Nicole Goldsmith, Kyle Kenyon and Alex Port have retained the leasing assignment on the building.
“The significant weighted average remaining lease term, strength of the credit on the rent roll, extremely attractive basis, and location in the path of the continued dynamic southward expansion and momentum of the Midtown submarket made this a very attractive opportunity,” said Jay O’Meara, Executive Vice President at CBRE. “It will be exciting to see the next chapter for Bank of America Plaza as CP Group implements their business plan.”
The sale of Bank of America Plaza highlights the increasing demand and confidence investors have in Atlanta’s Midtown submarket and the ever-expanding influence Georgia Tech, Georgia State and Emory University are having on tenant demand and thirst for talent in the submarket.
“We experienced strong interest from a diverse range of buyers presented with the opportunity to acquire this asset,” Yowell continued. “This landmark transaction bodes well for the continued recovery of the office market in Atlanta and nationally.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.