A subsidiary of KBS Real Estate Investment Trust III, Inc. has entered into an agreement to acquire the 509,237 rentable square foot office property at 171 17th Street in Atlanta, GA for $132.5 million.
Located on approximately 0.7 acres of land in the Atlantic Station development, 171 17th Street is 89 percent leased to 11 tenants.
The 21-story, Class A building was the first LEED Silver certified high-rise office building (core and shell) in the world and the first LEED certified high-rise office building of any level in Georgia.
Built over a 3-story, 75,000 square foot parking structure which ties into additional structured parking as part of the Atlantic Station development, the building delivered in 2004.
The current aggregate annual effective base rent for the tenants of 171 17th Street is approximately $10.5 million. The current weighted-average remaining lease term for the tenants is approximately 6.6 years.
KBS says it intends to fund the purchase of 171 17th Street with proceeds from a mortgage loan from an unaffiliated lender and proceeds from its offering. It is currently negotiating the terms of the mortgage loan. There can be no assurance that the acquisition will be completed.
The Atlantic Station development began in 1997 and was the largest brownfield development in the country.