The deal shows how the US office market is stabilizing; markets like Atlanta are back to pre-pandemic office rental levels
ATLANTA-JLL announced today that its Capital Markets team has arranged $ 421.8 million in funding for the Piedmont Center, a 2.2 million square foot Class A office complex in Atlanta, Georgia.
JLL worked on behalf of the borrower, The Ardent Companies, to secure the floating rate loan. The proceeds were used to refinance the debt of Ardent’s existing holdings in the Piedmont Center, as well as to acquire four additional buildings in the office complex.
Downtown Piedmont is located on 45.5 acres at 3495-3575 Piedmont Rd. NE on the wealthy Buckhead submarket. Buckhead is just four miles north of Midtown Atlanta and offers a variety of amenities including world-class shopping, museums, art galleries and recreational facilities. The area is served by major highways such as Georgia 400, Lenox, Peachtree and Roswell Roads, as well as Martha Station serving all of Atlanta.
Built between 1977 and 1998, the Piedmont Center has recently undergone a renovation of its exterior and interior, with additional improvements planned over the next few years. The diverse list of tenants across the portfolio includes firms in the fast-growing healthcare, technology and professional services industries.
JLL’s capital markets team, representing the borrower, was led by Senior Managing Director Ed Coco and Senior Director Matt Casey.
In addition, the JLL brokerage team led by Jeff Taylor and David Horn won the lease assignment for Buildings 5-8.
“Through the consolidation of ownership at the Piedmont Center, Ardent has created a tremendous opportunity to transform the office campus into a more dynamic workplace environment with the greater multi-functional amenities and environments desired in today’s marketplace,” said Coco. “We look forward to change in the coming years.”
“With this purchase, we continue to demonstrate our adventurous investment strategy by leveraging our relationship to provide capital,” said Scott Verbel, Managing Director of Ardent. “This transaction underlines Ardent’s commitment to the office sector in our key markets and we will continue to seek these opportunities as we further expand our geographic footprint.”
JLL predicts for the second quarter that the US office market will stabilize and total transaction volume in the second quarter rose 28.7% as tenants begin closing long-awaited deals. In emerging markets, leasing is now 10% higher year-over-year, and in markets like Atlanta, office rentals have returned to pre-pandemic levels.
The JLL Capital Markets group of companies is a global provider of one-stop capital services for real estate investors and tenants. With in-depth knowledge of the local market and global investors, the firm offers clients best-in-class solutions – be it investment consulting, debt placement, capital placement or recapitalization. The firm has over 3,700 capital markets professionals worldwide with offices in nearly 50 countries.
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