Arnall Golden will occupy 135,000 sf beginning in October 2004. Birmingham, AL-based SouthTrust's Atlanta operations will move into 95,000 sf on the building's first five floors beginning in April 2004.
The building is being developed by New York-based AIG Global Real Estate Investment Corp. for an estimated $80 million. The owner's representatives wouldn't disclose lease rates or the length of the individual leases.
But area brokers familiar with the Downtown submarket tell GlobeSt.com on condition of anonymity the leases are for an estimated 10 years at quoted rents of $22 per sf.
That would give the law firm lease an estimated aggregate value of $29.7 million and the bank's lease an estimated $20.9 million value. With a combined estimated value of $50.6 million, the leases are among the largest to date Downtown, area brokers tell GlobeSt.com.
Both tenants are relocating from Midtown Atlanta properties where the average asking rental rates on class-A office space are said to be holding at about $26.50 per sf.
AGG moves from Midtown Atlanta's One Atlantic Center where it has been a tenant since 1994. SouthTrust, which is the lead construction lender for Atlantic Station, will relocate from One Georgia Center.
Locally based Jacoby Development Inc. initiated plans for the 140-acre mixed-use development in 1997 and purchased the land, occupied by Atlantic Steel Mill, for $76 million. An environmental cleanup followed a $1.5-million EPA impact study.
Atlantic Station will encompass six million sf of class-A office space, 1.5 million sf of retail/restaurant/entertainment space, 3,000 to 4,000 residential units in a mix of single-family and multifamily buildings, three hotels totaling 1,000 rooms, 11 acres of public park space, and a new $200-million Georgia Aquarium. A bridge is under construction to cross Atlanta's downtown highways and link Atlantic Station to Midtown.
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