Spear Street Pays $248M for Atlanta Office Assets

Perimeter Summit. Image courtesy of JLL

Spear Street Capital has purchased three office buildings in Atlanta for $247.5 million. The Class A assets are situated within Perimeter Summit.

Located off of Interstate 285, the office buildings are 1001, 2002 and 4004 Summit Blvd. Amenities at Perimeter Summit include fitness centers, conference centers, workspaces, parking and outdoor biking and walking trails.

According to CommercialEdge data, State Street was the previous owner of all three office buildings. 1001 Summit Blvd., completed in 1994, is 475,000 square feet. The 21-story tower is home to tenants including IBM, Sysnet, Zurich and Northside Hospital.

Built in 2002 and 18 stories tall, 2002 Summit Blvd. is 423,195 square feet, according to CommercialEdge data. Some tenants include Beazer Homes, McCormack Financial Planning and Anderson Dailey. The property also features 2,700 square feet of retail space. It is LEED Gold certified.

Also LEED Gold Certified and featuring 355,250 square feet, is 4004 Summit Blvd. The 16-story building was completed in 2017. Carr, Riggs & Ingram is a tenant, according to CommercialEdge data.

Perimeter Summit’s office space is leased to 12 tenants across 11 industries. High Street and Perimeter Mall nearby offer food, retail and entertainment options. Located in the Central Perimeter submarket, the largest corporate office market in the Southeast, the campus offers tenants easy access to Atlanta medical facilities and more than 4,000 businesses.

Perimeter Summit, featuring office, retail, hotel and luxury apartment space across 83 acres of land, is highly accessible, with a traffic count of some 250,000 vehicles per day. In proximity are neighborhoods including Buckhead, Brookhaven, Chastain Park and North Atlanta.

JLL Capital Market’s Senior Managing Directors Richard Reid, Ryan Clutter and Ed Coco, as well as Managing Directors Huston Green and Ralph Smalley represented the seller in the deal.

Atlanta’s office market performance

Construction rates and rents in the Atlanta office market continued to rise throughout last year, according to an Avison Young report. With more than 500,000 square feet of positive absorption in the third quarter of last year, corporate relocations and expansions in the area are abuzz.

Last year, Hines and Invesco Real Estate sold the Atlanta Microsoft campus for an estimated $500 million, equating to about $955 per square foot. At the time of the sale, the average price per square foot for Atlanta office space was almost $400.