Equity jointly owns the 13-year-old, 38-story, 774,344-sf building with a fund managed by Atlanta-based Lend Lease Real Estate Investments. The renewal keeps the building at 96% occupancy.
The value of the lease wasn't disclosed because Equity "doesn't disclose financial terms of any of our transactions," Paige Steers, public relations manager for Equity, tells GlobeSt.com. Area brokers tell GlobeSt.com the effective Midtown class A rent is about $21 per sf. That would give the 18-year lease an estimated aggregate value of $50 million.
"We carefully reviewed our options before finally deciding to stay at Promenade II," Steve Forte, managing partner of the 185-lawyer firm, says in a statement. "Midtown is the center of the major legal service providers in Atlanta, and it has served our clients and employees well since 1991."
Don Huffner, senior vice president of Equity's Atlanta region, calls Smith, Gambrell & Russell "an important customer" at Promenade II. The firm's headquarters are on floors 29 through 34 and on floor 36. "The level of new supply in Midtown made securing this early renewal very competitive, but the building's stature, amenities and location near the Arts Center helped secure the deal," Huffner says.
Newmark Southern Region LLC represented Smith, Gambrell & Russell. Bill Hollett of Equity Office negotiated for the building ownership.
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