Huge Deal for Buckhead Office Tower
In the battle to land new office tenants in Atlanta’s Buckhead Office Market,
Cousins Properties won a big victory for its office tower Terminus 200 with the signing of Miami-based law firm Greenberg Traurig LLP. The law firm signed a roughly 100,000-square-foot-lease in the building a couple of days ago, and it was just announced in the Atlanta Business Chronicle this past weekend. The text below is from their article:
Blue chip investment bank Morgan Stanley will inject more than $15 million into Cousins Properties Inc.’s Terminus 200 and become the new equity partner in the Buckhead office tower.
The partnership opens the door for Miami-based law firm Greenberg Traurig LLP to sign a roughly 100,000-square-foot-lease in the building. Greenberg Traurig could move as early as next summer and put its name atop the 25-story tower.
Since 2005, its Atlanta office nearly doubled its attorneys to 102 and increased revenues 110 percent.
The new lease will make a big dent in the Terminus 200 vacancy rate, which topped 90 percent. The Morgan Stanley Real Estate infusion could also help Cousins fill the remaining floors.
More deals may be in the offing.
“Greenberg Traurig was patient with us while we were restructuring,” Cousins CEO Larry Gellerstedt said. “[We] ended up with a lot of different parties involved and with a lot of different moving pieces.”
The deal, more than a year in the making, survived because of trust.
Ernest Greer, managing shareholder of the Atlanta office of Greenberg Traurig, said his friendship with Gellerstedt sustained the longer-than-expected negotiations.
Greer was once an attorney with Alston & Bird LLP, where he worked closely with Beers Construction Co., operated by Gellerstedt’s family.
Beers helped reshape the Atlanta skyline with projects including the former Olympic Stadium (now Turner Field).
“When Cousins ran into restructuring issues, Larry would call and say, ‘We’ll get it done. Just stay in the boat with us,’ ” Greer said. “We knew about Cousins and Larry’s reputation, and we trusted this deal would happen.”
Greenberg Traurig will relocate from The Forum on Northside Parkway.
The firm, known for its entrepreneurial culture, wanted to be in central Buckhead, a hub for investment banks, commercial real estate brokerages and consulting firms.
Terminus, the giant mixed-use project that Cousins is developing at Piedmont and Peachtree roads, is also close to restaurants, hotels and shopping.
All those amenities appealed to the law firm. “We wanted to find what we believe to be a more energetic environment,” Greer said. “I think the move is symbolic of our desire to be in heart of Buckhead.”
CB Richard Ellis Inc.’s David Todd, John Shlesinger and Jay Dowlen represented Greenberg Traurig.
The partnership with the Morgan Stanley fund helped restructure the $138 million loan that financed Terminus 200. Cousins Properties renegotiated the loan with a group of lenders that helped finance the office tower, including Wells Fargo & Co. and Regions Bank, and Bank of North Georgia.
“As the lease signing today demonstrates, we believe the building is now well-positioned to attract top-tier firms to one of Atlanta’s leading business centers,’’ said John Klopp, chief of Americas Real Estate Investing and Global Real Estate Debt Investing at Morgan Stanley.
The Morgan Stanley fund replaces Prudential Real Estate Investors as equity partner.
Cousins and Prudential Real Estate Investors took a combined $70 million write-down in the past year as building values across metro Atlanta plummeted.
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