The deal marks the law firm's second expansion in five years, with the firm initially signing for 6,000 sf in 2001. Studley, which represented Butler Snow in the transaction, could not release the lease terms--including length and rate--but did confirm for GlobeSt.com the deal comes in below market rate. In addition, a Studley representative says the firm looked at several other buildings in Memphis, including build-to-suits, before deciding to stay at Crescent Center.
Colliers International office market numbers put average year-end lease rates at $16.02 per sf, for all classes. That figure equals an approximately 1.6% increase from $15.76 per sf at year-end 2004.
"Being centrally located in East Memphis has been an ideal location to expand the firm's practice," says Randall D. Noel, a Memphis partner of Butler Snow. "By making a long-term commitment to the Crescent Center, we are able to continue to provide a broad range of services to clients on a regional and national basis without the disruptions associated with a move, while having the flexibility to meet our firm's growing needs."
Andrew Lechter, executive vice president of Studley, branch manager of the firm's Atlanta office and a member of Studley's Law Firm Practice Group, and Greg Katz and Jon Bourbeau of Studley's Fort Lauderdale office repped Butler Snow in the deal. The building's owner, IPC Crescent Center, LLC, was repped by Ron Kastner of CB Richard Ellis and Brent Boland of IPC.
"Butler Snow is able to expand without incurring major capital expenditures in the process," Lechter says. "The new lease arrangement provides the firm with contiguous expansion space to accommodate future growth, a full-floor identity, ample flexibility, and a favorable cost structure beneficial to the firm's interests."
IPC bought Crescent Center in October. At the time of the sale, the nine-story trophy asset was 97% leased. While no dollar amount was placed on Crescent Center, IPC US REIT agreed to acquire the Memphis site and another class A office building in Houston, Loop Central, for a combined $129 million.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
