In what might be akin to a royal sale, one of the largest -- and most iconic -- office complexes outside the Perimeter appears to be on the market.
TIAA-CREF will apparently sell the 2.152 million-square-foot, five-building Concourse Corporate Center near I-285 and Ga. 400.
At the center of the complex are the "King and Queen," 32-and 33-story towers whose distinctive tops resemble royal crowns.
Those buildings alone are 687,000 square feet and 697,000 square feet, respectively, and analysts estimate the total complex could go for $375 million, or $175 per square foot.
Gary Lee, a managing director for Cassidy Turley, which is not affiliated with the sale, said that price is "totally achievable in this environment."
The potential sale of the complex could represent one of the biggest commercial real estate deals in Atlanta since the economic downturn and could attract fund shops, real estate investment trusts and off-shore buyers. Once it officially hits the market, experts say it could be sold in three months.
That is a far different outlook for Atlanta, which was hit hard by the recession. In February, the 55-story Bank of America Plaza -- the tallest building in the Southeast -- was taken back by its lender in a foreclosure auction. At that time, the region had a reported $6.53 billion worth of distressed and foreclosed commercial properties.
"This is the biggest individual asset to hit the market [outside of distressed properties] in recent memory," Lee said. "It represents the largest trophy office building to come to market in recent memory, especially since the downturn."
A representative for TIAA-CREF in Manhattan would not comment on the potential sale.
Will Yowell, the vice chairman of CBRE's Investment Properties Institutional Group in Atlanta, would only confirm that his company has been engaged to represent TIAA-CREF.
"Obviously, this is a very confidential matter," Yowell said.
Aside from the King and Queen, the complex includes two eight-story buildings, a four-story building and the rights to develop 1.7 million square feet of additional space. The complex has an 80 percent occupancy rate -- with tenants including CompuCredit, Dell, Ericsson, Hitachi, Morgan Stanley and T-Mobile.
Mike Shelly, a senior managing director and principal with Cassidy Turley who worked for the Landmarks Group, which developed the complex in the 1980s and 1990s, said the complex has always competed well in the market -- even during tough economic times -- while being distinct architecturally.
He said during the development, the architecture of the two towers presented an “analogy that was consistent with the identity that we wanted to create.”
“The Queen was built first, and it was carefully thought out. It was a very interesting process to see that evolve and become the final design,” Shelly said. “With the King, we had discussions about whether to duplicate the first top or do something different. We elected to do something complementary, and that worked.”
Lee said several factors make the complex attractive to potential buyers, including its high occupancy rate, a host of long-term leases and stable ownership.
TIAA-CREF, one of the country's leading retirement providers, has owned the complex since it was developed in the late 1980s and early 1990s.
"There are significantly more core office assets in Atlanta that are in the market or coming into the market than there were at any time since 2007," Lee said.
Lee said as the economy slowly rebounds, investors are looking at secondary markets for investments that would get a better financial yield.
"These are iconic buildings, which is why TIAA-CREF held them for so long," Lee said. "They are fantastic long-term investments. My sense is that we were going to see well-occupied trophy assets in Atlanta test the market. This is not a distress sale. It may be harvesting a long-term investment."
