CP Group JV Buys Atlanta’s Tallest Building

Bank of America Plaza. Image courtesy of CP Group

CP Group has expanded its footprint in Atlanta for the second time in a week with the acquisition of one of the most recognizable office high-rises in the U.S., Bank of America Plaza. In a joint venture transaction with funds managed by HPS Investment Partners LLC, CP Group acquired the iconic 1.3 million-square-foot tower from Shorenstein Properties LLC.

Rising 55 stories above the streets of Midtown, Bank of America Plaza first opened its doors at 600 Peachtree St. N.E. in 1992, a modern interpretation of the art deco style by the architecture firm Kevin Roche John Dinkeloo and Associates.

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The well-known fixture on the Atlanta skyline is home to tenants ranging from the traditional to the tech-focused, and it counts Bank of America and law firm Troutman Pepper as its anchors. Bank of America Plaza last changed hands in 2016 when Shorenstein purchased the asset from special servicer CWCapital Asset Management for $220 million.

CP Group’s acquisition of the landmark tower comes on the heels of its purchase of another Class A office asset in Atlanta, the 169,000-square-foot, fully leased Buckhead Centre, which the company bought in a joint venture with the Private Real Estate Group of Cohen & Steers Capital Management Inc. in late February 2022.

“We have been investing in the Atlanta market for many years. In the past few years, we have seen an unprecedented amount of economic activity driven by mass corporate relocations to the area and we believe the city is positioned for sustained growth over the next several years,” Chris Eachus, partner with CP Group, told Commercial Property Executive.

Making the most of the market

Metropolitan Atlanta’s office market has yet to fully recover from the consequences of the pandemic; however, it continues to benefit from a few significant factors, and CP Group plans to position Bank of America Plaza to capitalize on those factors. As noted in a fourth quarter report by Lee & Associates, Atlanta ranked as the top state in the U.S. for doing business for the seventh consecutive year in 2021, and the top moving destination for the eighth year in a row.

With Atlanta’s advantages in mind, CP Group will invest $50 million in a capital improvement program at Bank of America Plaza to further enhance the property’s value. The company will submit the lobby to a comprehensive renovation and develop a high-end restaurant, as well as 100,000 square feet of customizable pre-built office suites as part of its signature in-house flexible workspace program. Bank of America Plaza’s amenities list already includes a recently renovated, 4,000-square-foot conference center; a 17,000-square-foot, high-end fitness facility; a new food hall; a salon; and a new 1.2-acre public greenspace that connects the building to the surrounding neighborhood.

CP Group expanded its portfolio by 5 million square feet in 2021, and the commercial real estate firm appears to be in a shopping frame of mind once again in 2022. However, the company, which is known for its projects throughout the Southeast and Southwest, is not limiting its sights to Atlanta. “We continue to remain focused on the Smile States,” Eachus said.