One of the office towers in downtown Atlanta’s Peachtree Center complex has been listed for sale, the latest sign of activity in an office market that has been plagued by high vacancy rates.
Brokers at JLL this week listed 230 Peachtree St. for sale at $14 million, or $50 per square foot, according to marketing materials. The building includes offices and a Hotel Indigo, but the listing does not specify whether both the offices and hotel are part of the sale offering. The building owner, Portman Holdings, and the JLL brokers, Richard Reid and Huston Green, did not respond to CoStar News' requests for comment.
Downtown Atlanta’s office market vacancy rate of 16.9% is higher than the citywide average rate of 16.5%, according to CoStar data. Rent growth in downtown Atlanta on a yearly basis slowed to 1.2% this year, down from the 2.5% average over the past five years.
Last month, investor Dilweg listed the 101 Marietta office tower in downtown Atlanta for sale for an undisclosed asking price. That building is about 62% leased.
Also last month, an affiliate of Lone Star Funds forfeited ownership of 55 Allen Plaza to its lender. The 55 Allen Plaza building is the last top-tier office property to open downtown in about 20 years.
The 230 Peachtree tower’s office component is 64% leased with Citizens Bancshares the largest tenant at 16,000 square feet, according to CoStar data. Although the JLL sale listing does not indicate whether the hotel is also for sale, the asking price equates to about 280,000 square feet. The entire building is about 290,000 square feet, according to CoStar data.
The JLL sale listing touts the building’s “recently renovated lobby,” access to a public-transit rail station, on-site restaurant and connection to the Hotel Indigo. The Hotel Indigo portion of the building opened in converted office space in 2015.
InterContinental Hotels Group, parent of Hotel Indigo, did not respond to a request for comment.
Portman Holdings is the namesake firm of the late developer and architect John Portman, who designed the Peachtree Center complex. The 230 Peachtree tower opened in 1965.
For the record
Steve DeVinney and Malik Leaphart at Stream Realty Partners represent Portman on office leasing at 230 Peachtree.