We recently conducted an analysis looking at the biggest U.S. office sales of 2018, and while many of these sales closed in pricey and popular markets like New York, Boston, Chicago, or Seattle, one Atlanta deal also managed to sneak in: the $268 million sale of Three Alliance Center was the 48th largest office transaction of 2018.
The Florida State Board of Administration forked over roughly $532 per square foot to land the 30-story, Class A+ high-rise from Tishman Speyer in January, setting the tone for the rest of the year. The 502,358-square-foot Buckhead office tower was completed in 2017 and is home to high-profile tenants such as CBRE, Aon, Global Advisors, and Serendipity Labs, according to data from Yardi Matrix.
Roughly 6 months after the Three Alliance Center sale, Bridge Investment Group closed another notable 2018 Atlanta office deal. The company paid $251 million to acquire the 1 million-square-foot AT&T Office Portfolio from Fortress Investment Group in August 2018. The sale was funded by a $223 million loan held by TPG Capital, due in 2022, and included the properties at 1025, 1055 and 1277 Lenox Park Blvd. NE, and 2180 Lake Blvd. NE. Bridge Investment Group also closed the fourth-largest deal of the year, when it bought the Royal Centre Portfolio from The Dilweg Cos. for $107 million.
The Atlanta office market closed 2018 with two sales topping the $200 million mark and three sales with price tags over $100 million. New York Life Real Estate Investors closed the third-largest deal of the year, acquiring the property at 3475 Piedmont Road NE for $166 million, Bridge Investment Group paid $107 million for the Royal Centre Portfolio, while Starwood Property Trust shelled out $105 million to purchase the office building at 7000 Central Parkway from CBRE Global Investors.
Check out the full top 10 below:
- Data source: Yardi Matrix;
- We considered transactions of completed properties, recorded up until February 18th, 2019;
- Square footage parameters: at least 25,000 square feet;
- Our analysis includes ownership stake, controlling interest, and remaining interest deals;
- We count portfolio deals as single transactions; these portfolio deals include only properties located within the same campus or sharing the same transaction terms;
- In the case of mixed-use assets, we only considered properties featuring at least 50% office space;
- We excluded distressed sales from our analysis.