Lionstone Lands 164 KSF Tenant in Atlanta

April 23, 2024

This deal marks the largest office lease in the market so far this year.

The office building at 271 17th St. in Atlanta. — The LEED Gold-certified office building is in the West Atlanta submarket. *Image courtesy of Cushman & Wakefield*

Lionstone Investments has signed a 164,221-square-foot lease at 271 17th St., its Atlanta office building totaling more than 540,000 square feet. This deal marks the largest office lease in the metro so far this year.

The new tenant, Piedmont Healthcare Inc., will consolidate three of its offices at the 25-story building. The move also marks a downsize for the hospital system, which will reduce its administrative footprint by more than 50 percent, according to Bisnow.

Piedmont’s future location is 2 miles from its main campus on Peachtree Road. Cushman & Wakefield represented the landlord, while Savills worked on behalf of the tenant.

A LEED Gold-certified office building

Lionstone acquired the asset in May 2017 for $182 million—almost $336 per square foot—from CBRE Investment Management, CommercialEdge data shows.

The LEED Gold-certified tower came online in 2009 in Midtown’s Atlantic Station. The building features floorplates averaging 21,672 square feet, 17,000 square feet of first-floor retail space, 10 passenger elevators and about 1,050 parking spaces. Amenities include a fitness center, conference center and access to a free MARTA shuttle.

Tenants at the Class A office property include Finnegan, FordHarrison, Sage and Clyde & Co., according to CommercialEdge information. The building at 271 17th St. NW is less than 4 miles from downtown Atlanta, while Hartsfield-Jackson Atlanta International Airport is some 13 miles southwest. The location is also 2 miles from a 193,000-square-foot office property that was recently refinanced.

Cushman & Wakefield Vice Chair Aileen Almassy and Senior Director John Zintak represented the landlord. Savills Vice Chairs Bo Keatley, David Rubenstein and John Flack, along with Managing Director Michael Broome, brokered the deal on behalf of the tenant.

Atlanta’s office sector holds steady

Atlanta’s office vacancy rate clocked in at 17 percent in March, 120 basis points below the national average, according to the latest CommercialEdge office report. The metro’s listing rate stood at $31.54, lower than the $37.74 U.S. average.

Earlier this month, Westbridge and FCP signed a 45,000-square-foot leasing agreement at their campus in Atlanta’s West Midtown. Construction Papers will open a design center in early 2025 at the new location.

Other notable leasing deals in the market include Pond’s commitment to a 101,891-square-foot renewal at OA Development’s Peachtree Ridge in Norcross, Ga. The company has been a tenant at the location since 2005.