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AT&T Takes Big Step Forward in Plan to Create Large US Hubs With Atlanta Leases

Bridge Investment Group Signs AT&T to More Space at Lenox Park Complex
AT&T leased 1057 Lenox Park Blvd. and another nearby building in Atlanta as part of its strategy to consolidate into nine core hubs in key U.S. markets. (CoStar)
AT&T leased 1057 Lenox Park Blvd. and another nearby building in Atlanta as part of its strategy to consolidate into nine core hubs in key U.S. markets. (CoStar)
CoStar News
May 10, 2024 | 8:19 P.M.

AT&T is making a major commitment to its plan to create hubs in its major United States markets, embarking on one of the city's biggest office lease deals of the year by taking two entire buildings in Atlanta that are now vacant.

The telecommunications firm took the space at 1055 Lenox Park Blvd. and 1057 Lenox Park Blvd., according to building owner Bridge Investment Group. Each building is four stories and the leases cover a combined 205,761 square feet, Bridge said in a statement.

AT&T already occupied two other office buildings in the Lenox Park complex at 1025 Lenox Park Blvd. and 1277 Lenox Park Blvd. and once occupied portions of all the office buildings at Lenox Park before trimming its office footprint in phases starting in 2018. Now AT&T is seesawing again and expanding its presence at Lenox Park.

The move shows how the strategy that AT&T CEO John Stankey outlined last year is playing out, with the company planning to cut back on its office space nationwide and consolidate into nine core hubs in important U.S. markets, including Dallas, Atlanta, Los Angeles and Washington, D.C. One of those hubs is its downtown Dallas headquarters at AT&T Discovery District.

Another hub is in Chantilly, Virginia, a Washington, D.C., suburb, where AT&T signed a lease in December for 111,165 square feet at 4807 Stonecroft Blvd., according to CoStar data.

AT&T did not immediately respond to a phone call and email for comment from CoStar News about its plans for Lenox Park and other core U.S. hubs.

Atlanta Hub

Atlanta’s Lenox Park, a 32-acre campus located one mile from Buckhead’s central business district, is now AT&T’s largest operating hub in Atlanta, according to the statement from Bridge Investment Group.

Besides office buildings, Atlanta’s Lenox Park also includes an MAA apartment complex and a Marriott Residence Inn.

AT&T's combined leases at Lenox Park are the second-largest in the Atlanta market this year, according to CoStar data. In the largest lease, an unidentified tenant in February leased 282,000 square feet at 725 W. Peachtree St., a building that was previously occupied by AT&T Wireless.

Bridge acquired Lenox Park in 2018 from Fortress Investment Group for over $250 million. Bridge sold one of the Lenox Park office buildings, 1025 Lenox Park Blvd., in 2022 to the Simpson Organization for $148.5 million.

Bridge has completed 690,000 square feet of leases at Lenox Park since 2018, including 327,000 square feet in the past year, according to the statement. The company has added amenities, including a food and beverage building, a central courtyard, outdoor meeting spaces, game areas and entertainment space.

Bridge recently closed on a $38 million loan from Dry Creek Capital Partners “that provides the capital we need to finish the tenant outfit with the recently signed leases” at Lenox Park, John Ward, chief investment officer for Bridge, said in the statement.

Bridge’s Bridge Office Fund I is the owner of the firm’s Lenox Park holdings.

For the Record

Jeff Shaw at Bridge represented his company on the lease with AT&T. Mark Davenport at CBRE represented AT&T. Terms of the lease were not disclosed.

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