Orlando Investor Looks to Acquire and Renovate 100 Edgewood Building Near Georgia State
by Tony Wilbert | CoStarGroup.com
An Orlando, Florida, investment firm plans to convert an 18-story tower into the largest creative office building in downtown Atlanta, one that will be geared toward corporations looking to relocate to the market.
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Parkway Property Investments LLC, plans to acquire the property at 100 Edgewood Ave. and redevelop the existing Class B office tower into a 306,000-square-foot office space, according to a filing with the Development Authority of Fulton County (DAFC).
The DAFC has drafted a resolution to approve the inducement of up to $75 million in bonds to finance Parkway's renovation of 100 Edgewood. The project will create 680 permanent jobs and 100 temporary construction jobs, and have an overall economic impact of $2.8 million, according to the Development Authority.
The Development Authority board had been prepared to consider the resolution at its monthly meeting next week, but the item was pulled from the agenda Thursday. "The applicant asked that it be pulled," DAFC Chief Executive Officer Al Nash said in a text message.
The resolution is expected to be considered at a future DAFC meeting.
The United Way of Greater Georgia owns 100 Edgewood. In 2016, the nonprofit began considering options for the property, including a potential sale of the site. In 2017, Colliers International marketed the property that is an easy walk to Georgia State University. As such, some expected the building would be converted into student housing. At the time, the United Way had begun plans to empty the building.
Neither Parkway nor the United Way immediately responded to requests for comment.
Parkway's plans emerge as demand for creative office space in Atlanta continues to grow. According to Third & Urban, an Atlanta firm that specializes in developing creative office space, Third & Urban estimates that creative office space accounts for less than 5% of Atlanta's overall office market, while it accounts for 25% of demand.
As a result, developers have started several projects to meet the growing appetite. However, a bulk of the demand for creative offices has been concentrated in West Midtown, where several projects are underway. Last month, Houston development firm Hines commenced construction on a two-building creative office project at Atlantic Station that will add 500,000 square feet of space to the market.
Creative Office Development
Creative office space typically offers tenants more of an open-office environment and areas for collaboration and amenities such as game rooms and dining areas usually not found in traditional offices.
Some downtown buildings have worked to add creative office suites, but Parkway's project at 100 Edgewood would be the single-largest project of its type in the market.
Overall, downtown has had very little office construction during the past year, with only 140,000 square feet of space delivered, according to CoStar. The vacancy rate for Class B space downtown is 6.9%. The renovated office at 100 Edgewood would offer Class A space, according to the Development Authority. The vacancy rate for Class A office space in the downtown market is 8%, according to CoStar.
Parkway plans to close on its acquisition of 100 Edgewood in the third quarter, according to DAFC documents.
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Phillip is an commercial real estate broker specializing in tenant representation in the Downtown and Midtown Nashville markets in office and industrial leasing and investment sales. Phillip represents clients in various sectors, including tech, start-up, and not-for-profit. As a leasing advisor, Phillip’s goal is to help his clients find flexible real estate solutions for both their short and long-term needs. His training and experience in property management at CBRE, Inc. in their Asset Management Division ensures his clients interests are protected and that optimal deal terms are achieved. Phillip began his career in real estate as a real estate specialist with the United States Corps of Engineers and now he focuses on office and industrial properties. Check out more of Phillip's content on the MGM Commercial YouTube channel.