Midtown's Tallest Building Has New Owner

ATLANTA, GA — Starwood Capital Group, a global private investment firm, announced on Tuesday that a joint venture of Starwood Global Opportunity Fund X and Core Property Capital has bought One Atlantic Center, Midtown Atlanta's tallest office tower.

Terms of the transaction were not disclosed.

Designed by architect Philip Johnson, One Atlantic Center is a 50-story, LEED Gold-certified office tower located on West Peachtree Street in the city's central business district, and includes 1.1 million square feet of office space and a 2,110-space parking garage. Offering a full complement of amenities, the property boasts superior access to the major north/south highway running through Atlanta and is located just one block from the Arts Center station of the city's rail system, MARTA.

Atlanta itself is one of the fastest-growing metropolitan areas in the country, with a projected growth rate over the next five years of 6 percent—far exceeding the projected average for the 50 largest metros. The city is expected to be among the top 10 in both population and job growth among the nation's largest cities over that same time frame.

"This acquisition is consistent with our long-held investment strategy of buying high-quality assets at a meaningful discount to replacement cost in markets experiencing limited amounts of new supply and outsized job and population growth," said Mark Keatley, Managing Director at Starwood Capital Group. "Furthermore, One Atlantic Center's immediate neighborhood will be enhanced by multiple hotel, residential and retail developments currently under construction, including a flagship Whole Foods Market being built across the street."

The joint venture acquired the TowerPlace office and retail complex in Atlanta's Buckhead area in July 2015.

"We are pleased to be acquiring one of the premier office buildings in Atlanta. One Atlantic Center is a high-quality asset with a strong tenant roster that will generate significant cash flow for years to come," said Christopher Graham, Senior Managing Director and Head of Acquisitions for the Americas at Starwood Capital Group. "These factors, combined with the attractive rent growth we've observed at our TowerPlace investment, give us conviction that One Atlantic Center will generate attractive total returns for our investors."

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