Raleigh-based Highwoods Properties, a publicly traded REIT, announced today that it had purchased One Alliance Center in Atlanta for $143.4 million, or $259 per square foot. The acquisition means that the company now owns both One and Two Alliance Center, having acquired Two Alliance Center last September for $146.7 million from Tishman Speyer. Dallas-based mortgage servicer ORIX Capital Markets sold One Alliance Center in a deal marketed by CBRE. In March, previous owner Tishman Speyer negotiated the transfer of ownership in One Alliance to ORIX, according to an Atlanta Business Chronicle article.
"The acquisition of One Alliance more than doubles our presence in Buckhead where we now wholly-own over one million square feet of contiguous Class A office space," said Ed Fritsch, president and chief executive officer of Highwoods. "This is a rapidly tightening submarket and we forecast leasing at One Alliance to exceed 93% within three years. In addition, we see opportunities to 'Highwoodtize' the property and expect to garner operating and leasing synergies by owning both Alliance Center towers through shared parking, shared amenities, shared vendor agreements and customer expansions to name a few."
The 20-story One Alliance building was 67% leased at the time of sale. Both towers stand over Georgia 400, an artery for intown office workers to the Atlanta suburbs, and across from Phipps Plaza, a ritzy mall owned by Simon Property Group.
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