Paces West Office Trades for $114M

VININGS, GA-The long-rumored sale of the 646,471-sf Paces West has been completed. Chicago-based Equity Office Properties Trust has sold the two-building asset in this suburb to Addison, TX-based Behringer Harvard REIT 1 Inc. for $114.14 million or $176.49 per sf. The 82%-leased complex is in the Cumberland-Galleries submarket in Buckhead at 2727 Paces Ferry Rd. SE.

A representative for Behringer Harvard tells GlobeSt.com the deal closed April 19. Area brokers intimate with the class A office market in the Cumberland-Galleries area tell GlobeSt.com the two buildings have been on the market for the past five months at a speculated combined asking price of $110 million or about $170 per sf.

Robert M. Behringer, chairman and CEO of Behringer Harvard, says his company acquired Paces West “at a significant discount to replacement cost.” He says the acquisition “should allow our investors to capitalize on attractive current yields and potentially benefit from improving fundamentals in the Atlanta market.”