Georgia State University might buy the iconic Equitable Building in downtown Atlanta, a skyscraper that helped shape the city’s skyline since the 1960s, but in the modern era became an emblem of the metro area’s commercial real estate woes.
A university official also said plans are moving forward for a new downtown academic building for Georgia State’s business school.
In an email to faculty and staff, H. Fenwick Huss, the dean of Georgia State’s J. Mack Robinson College of Business, said the university is “trying to acquire” the 33-story Equitable high-rise. If successful, space could be available there for Robinson College “administrative and faculty offices” within the next two years.
A call to officials at the Robinson College was not immediately returned. Georgia State has long been considered in real estate circles a possible buyer for the landmark Skidmore, Owings & Merrill-designed skyscraper at 100 Peachtree Street.
A deal would be a coup for Georgia State, which is growing rapidly and trying to expand in a time of state budget austerity.
With more than 31,500 students, Georgia State is the second largest in the state system behind the University of Georgia. Robinson College had more than 7,600 graduate and undergraduate students as of fall 2009.
In the past decade, Georgia State has aggressively shed its commuter school image, building or buying property for residence halls, instructional space and other facilities. It isn't clear how Georgia State might structure a purchase, but the university's non-profit foundation could play a role.
In Equitable, Georgia State could buy one of the first major casualties of Atlanta’s real estate collapse. In 2007, the building was acquired by an investment group for nearly $57 million. It was foreclosed by the lender in June 2009 for $29.5 million.
“It’s a logical expansion of their campus,” said Mike Shelly, executive vice president of brokerage services with Atlanta-based real estate firm Carter. “Any time you take competitive space off the market it’s a positive influence on supply and demand.”
Office vacancy in downtown Atlanta was 14.1 percent at the end of first quarter 2011, compared the 17.4 percent metro average, according to the CoStar Group.
If Georgia State is successful, competing developments such as Peachtree Center would benefit, said Raney Real Estate President Ben Raney.
“I’d be shocked if this is the end of [Georgia State’s] expansion,” Raney said.
Huss, the Robinson dean, also wrote the university is “actively pursuing private funding” to help finance a planned 250,000-square-foot academic building for the business school near Park Place and John Wesley Dobbs Avenue.
“Our goal, subject both to fund-raising success and approval by the Board of Regents, is to move forward with the Academic Building in the next three years,” Huss wrote.
Staff Writer Laura Diamond contributed to this article.
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