Midtown tower that housed BellSouth under contract

WellsFargo took bids on the building, located at 1155 Peachtree St., from several prominent firms, including Cousins Properties, Daniel Corp., and Ackerman & Co.

But Dewberry, a former Georgia Tech quarterback and the developer of two Midtown office towers, is the leading contender, according to a person with direct knowledge of the bidding.

Another real estate professional believes Dewberry’s bid for the Campanile is about $36 million, which would equate to about $80 per square foot. WellsFargo had originated a loan on the building for $98.35 million for the previous owner.

Dewberry, who was traveling Thursday, could not be reached for comment.

Dewberry developed two Midtown office buildings in the past decade: One Peachtree Pointe at 1545 Peachtree St., and its sister, Two Peachtree Pointe.

One reason CoStar Group reports occupancy at One Peachtree Pointe down to 42.5 percent is because law firm Seyfarth Shaw relocated to 1075 Peachtree, a Midtown tower developed by Daniel Corp. and Selig Enterprises. Dewberry avoided foreclosure on One Peachtree Pointe earlier this year.

Two Peachtree Pointe, however, got a big win with the headquarters of Invesco. That tower is 72.3 percent leased, according to CoStar data.

Dewberry also owns land at Peachtree and 10th streets which he has been holding for redevelopment for years. Some in Midtown have groused that he has not redeveloped the prime stretch of Peachtree yet, but Dewberry has said he is waiting until the moment is ripe.

Dewberry still has to clear the hurdle of closing on the Campanile building. It was not immediately clear where his financing would come from.

Ken Ashley, a senior director of real estate services firm Cushman & Wakefield, called the Campanile an “iconic asset.”

Midtown is a “great submarket and it’s not Buckhead,” where, he said, office vacancy rates have risen to about 27 percent.

Midtown’s vacancy rate is 23.3 percent, according to data from Cushman & Wakefield.