Shorenstein Buys One of Atlanta's Office Gems from Greenstone & Goldman Sachs

Shorenstein Investment Advisers has purchased the 14th & Spring office tower, a 12-story building in Atlanta encompassing 324,000 square feet. The transaction was completed entirely with cash, with no financing involved.

Property Background and Lease Details

The office tower was previously listed for sale by Greenstone Properties and Goldman Sachs, who had acquired it in February. It is under a 13-year unsubordinated net ground lease with the Development Authority of Fulton County, set to expire in December 2032. Greenstone initiated the project in 2019, financing it through an $84.7 million loan from U.S. Bank, with HKS as the architect.

Current Status and Planned Improvements

Since its completion in 2022, the building has remained vacant. It includes features such as outdoor balcony spaces, collaboration hubs, a large lobby, a coffee shop, and a fitness center. Shorenstein plans to implement a capital improvement strategy to enhance common areas and expand amenities. ASD | SKY will oversee the lobby repositioning, exterior upgrades, and building entrance enhancements, while Murphy Meyers will design speculative suites on a full floor, with construction to begin shortly.

Leasing and Location Details

The property, certified LEED Silver, is located at 1150 Spring St. in Midtown Atlanta, offering easy access to the Downtown Connector and proximity to hotels, residential areas, and various retail and dining options. CBRE’s leasing team, led by Jeff Keppen, Nicole Goldsmith, and Kyle Kenyon, with new member Maddie Nagley, will handle leasing efforts.

Market Trends and Office Utilization

Claude Esposito, vice president at Shorenstein, noted that the trend towards high-quality office spaces is evident in Atlanta, with modern properties attracting tenants. Research from JLL indicates that Midtown office buildings constructed since 2015 have experienced a net occupancy gain of over 3.8 million square feet in the last three years, contrasting with a loss of 1.6 million square feet for older properties. Additionally, a Cushman & Wakefield survey shows that about 85 percent of the 150 responding companies in Atlanta require employees to be in the office three or more days a week.

Recent Shorenstein Project

In May, Shorenstein, in partnership with Stiles, inaugurated 110 East, a 23-story, 370,000-square-foot Class A office building in Charlotte, N.C., which achieved LEED Gold and WiredScore Platinum certifications.