Hines Plans 625,000-SF Tower, Negotiates 400,000-SF Lease

ATLANTA-With Midtown’s office vacancy level at 25%, Houston-based developer Hines Interests LLC is taking a calculated risk with plans to break ground in the first quarter 2004 on a $125 million, 625,000-sf office building. The 41-story tower will located at the long-planned Symphony Center site on Peachtree and 14th streets.

Hines confirms it has contracted to buy two of the six acres at the site from landowner Woodruff Arts Center for an undisclosed sum. Industrial real estate brokers tell GlobeSt.com the price will be about $1 million per acre or $22.96 per sf. Woodruff bought the land in 2000. The unnamed tower would be the first phase of the Symphony Center venture.

Hines hopes to hedge its bet with a long-term lease being negotiated with locally based law firm King & Spalding for 400,000 sf or 64% of the building’s rentable area. King & Spalding would occupy the top 14 floors with an option to expand in later years. Hines and law firm officials couldn’t be reached by press time.