A company representative tells GlobeSt.com the price will be disclosed at a later date. However, Atlanta and New York brokerage sources in a position to know tell GlobeSt.com the deal went down on the high side at between $650 million to $675 million. That range equates to about $185.71 to $192.85 per sf, below replacement cost, construction sources familiar with the buildings tell GlobeSt.com.

Tishman Speyer senior managing director Robert J. Speyer calls the acquisition "a sizable portfolio of diversified, high-quality assets, well located in each of Atlanta's top four office submarkets…featuring a roster of premier tenants."

Tishman Speyer acquired the portfolio, formerly owned by Chicago-based Trizec Properties, through an assignment of purchase rights from the Blackstone Group of New York. Blackstone had acquired purchase rights through its participation in the acquisition of Trizec by Brookfield Properties, also of New York.

The portfolio comprises One Alliance Center, a 20-story, 558,000-sf, 100%-leased, class A building in the center of the Buckhead submarket; Two Alliance Center, a to-be-developed 20-story, 500,000-sf, class A building that will complement One Alliance Center; a development site for a third Alliance Center tower; One Midtown Plaza and Two Midtown Plaza totaling 504,000 sf along Peachtree Street in the Midtown business district; Colony Square, totaling 700,000 sf of class A office space in two buildings and an attached 140,000 sf retail mall on Peachtree Street; Interstate North Office Park, totaling over 950,000 sf in 11 buildings on 105 acres at the intersection of Interstates 285 and 75 northwest of Downtown; and Palisades Office Park, totaling 630,000 sf in four buildings at Interstate 285 and Peachtree Dunwoody Road.

Tishman Speyer's entry into the Atlanta office market comes as demand improves while new product lags, according to a new survey by the local office of Marcus & Millichap Real Estate Investment Brokerage Co. John Leonard, regional manager of the firm's Atlanta office, says developers are slated to complete 2.4 million sf of new product this year but absorption is projected at 2.5 million sf.

"Broad-based job creation is producing strong office absorption, and vacancies are steadily trending downward," notes Leonard. "Solid and steady revenue growth prospects and relatively higher cap rates compared to the national average are attracting strong investor interest, especially from out-of-state buyers."