Case Study

Executive Summary: Located at the confluence of Peachtree and West Peachtree Streets in Atlanta’s Midtown, Pershing Park Plaza (“PPP”) is one of the City’s most unique and richly appointed boutique office properties. PPP is leased to three tenants, the primary one being the prestigious law firm of Jones Day (88% of the building / exp. November, 2020). The challenge was overcoming market perception of the binary situation created by the short term nature of this effectively single tenant asset (i.e., a law firm with 4+ years of term remaining). It was our task to present a thorough understanding of the dynamics of today’s market in terms of the lack of significant speculative development, increasing demand and the unprecedented growth in rental rates anticipated over the next few years, thus painting the picture that even if Jones Day were to leave in 4 years, the upside potential was dramatic.

Property Statistics:

Size: 160,145 RSF
Year Built: 1989
Leased at Sale: 97%
Major Tenant: Jones Day (88% of SF)
NOI Per Square Foot: $19.29

Result:

Price: $45,450,000
Price Per Square Foot: $284
Cap Rate: 6.8%
CAs Received /Tours: 101 / 18
Offers: 8
Initial E-blast to Closing: 110 days
Closing Date: 08/10/2016

Seller (Client): ELV Associates, Inc.

Buyer: Franklin Street Properties