Citicorp, now called Citigroup after Citicorp's merger with Travelers Insurance, in turn has moved due west to a new building across Interstate 25. The structure, developed by Miller Global, is in Waterview IV, says Garrick Olson, a broker with Cushman Realty. Olson is a close observer of the deals since he represented Citicorp when it renewed its lease in the Inverness building. He hasn't been involved in the latest string of deals, however.
AT&T Broadband has paid about $148 per sf for the 184,545-sf building at 183 Inverness Dr. West. It has been sold by Great Lakes REIT of Oak Brook, IL, which purchased it in May 1998 for $20.1 million.
Olson says Great Lakes should be pleased with the price. "What I think is that AT&T certainly didn't steal it," Olson says. He says the replacement cost would be $160 per sf to $165 per sf.
Olson notes there aren't many buildings along the southeast corridor for sale, so AT&T Broadband had slim pickings. "The building is 100% electric, which makes it more expensive to operate," Olson says. "Usually, buildings are a combination of gas and electric." And with the E-470 toll road in place, the property "has a great identity," he says. Olson says Great Lakes had been facing $20 to $25 per sf in tenant finish and commissions to re-lease it when Citigroup leaves. "The idea of a bulk sale looked pretty good," Olson tells GlobeSt.com.
John O'Meara, president of Inverness Properties LLC, which represented Great Lakes in the deal, says it was an excellent fit for AT&T Broadband. He points out that it already has its 250,000-sf headquarters across the street at Inverness. "They were in two separate parks--Meridian and Inverness--and they had to pick one to grow in, and they picked Inverness," O'Meara tells GlobeSt.com.
Between the two sites, he says AT&T can build two more buildings and structured parking. The office campus eventually could grow to about 655,000 sf. "I'm not saying they have any immediate plans to do so," O'Meara tells GlobeSt.com. "but certainly they intend to grow. This was a very logical move for them.
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