The 12-story 14th + Spring workplace tower in Midtown
One among Midtown Atlanta’s latest workplace towers is on the market as its developer seeks to exit its funding within the speculatively constructed constructing with out having secured any leases for its area.
Greenstone Properties and its monetary companion Goldman Sachs have tapped JLL to market 14th + Spring, the 12-story, 324K SF workplace tower that was delivered in 2022 and has remained vacant since, the Atlanta Enterprise Chronicle reported.
It’s a hanging transfer given the dearth of funding gross sales exercise over the previous yr, particularly for workplace area.
The event partnership’s $75.8M mortgage from Santander Financial institution was set to mature on Dec. 27, in keeping with the Reonomy database. A supply conversant in the providing mentioned Greenstone not too long ago prolonged its mortgage for an additional two years, giving the agency extra respiratory room to market the property.
Greenstone companion De Little declined to remark for this story, and JLL did not return calls searching for remark. Whereas the agency is itemizing the property on the market, a supply conversant in the potential transaction mentioned Greenstone additionally continues to market area for lease.
The owner has struggled to seek out tenants prepared to tug the set off on leasing area since its supply, however 14th + Spring hasn’t been with out tenant curiosity, the ABC reported. Nonetheless, Greenstone has been going through an uphill battle to lease the property as Midtown’s fundamentals have collapsed over the previous yr.
Within the fourth quarter, tenants gave up 338K SF extra workplace area than they leased within the submarket, bringing the emptiness charge to an all-time excessive of 23.4%, Colliers Atlanta reported. The damaging absorption shot up from 5,400 SF in This autumn 2022 to 150K SF in Q3 2023.
With one other 1.5M SF of workplace area nonetheless beneath building, there’s little proof to recommend demand will come again in steadiness with provide. Leasing exercise dropped 40% from This autumn 2022, making the final three months of 2023 the slowest for exercise in Midtown since 2010.