The Dilweg Companies Acquire Pershing Point for Repositioning in Midtown Atlanta
05 Mar 2018
CBRE facilitated the sale of Pershing Point, a 409,579-sq.-ft., 8-story office asset located at 1375 Peachtree Street Northeast in the heart of Atlanta’s Midtown. The Dilweg Companies acquired the property, bringing the firm’s Atlanta portfolio to over 2.3 million sq. ft. The building is anchored by long-term tenants Kaiser Permanente’s Healthcare IT division (156,000 sq. ft.) and global advertising firm HUGE (31,000 sq. ft.) and is balanced by ten others, largely TAMI (Technology, Advertising, Media and Information Systems) tenants.
CBRE’s Will Yowell, Justin Parsonnet, Jay O’Meara, an Ryan Reethof represented the seller, CBRE Global Investors, in the transaction. CBRE’s agency leasing team of Chris Port and Nicole Goldsmith have been retained by new ownership.
“CBRE leveraged its platform of veteran onsite management and leasing expertise and active capital market knowledge to articulate Pershing Point’s unique investment opportunity. This generated strong investor demand and market depth. We worked closely with CBRE Global Investors orchestrating an aggressive bid process and ultimately selecting The Dilweg Companies to lead Pershing Point’s next phase in its history as an innovation hub,” said Mr. Yowell, vice chairman at CBRE Capital Markets.
Built in the 1960s, the property has continually evolved with the submarket and has long been a space sought after by technology innovators – once the headquarters for MindSpring and Earthlink.
“Pershing Point is a perfect example of a historical building embedded within Midtown’s dynamic urban environment ready to be repositioned. It offers the opportunity to leverage accelerating demand drivers in the city’s premier tech corridor and creative class submarket,” said Mr. Parsonnet, executive vice president at CBRE Capital Markets.
“We have been working tirelessly to find the right product in Midtown and believe we’ve found it in Pershing Point. The opportunity to dramatically reposition an asset in order to meet the market is ultimately what gets us excited,” said Blake Underwood, Regional Director at The Dilweg Companies.
Atlanta placed #5 in CBRE’s Scoring Tech Talent report, which ranks 50 U.S. and Canadian markets according to their ability to attract and grow tech talent. Georgia Tech, which is located less than one mile from Pershing Point, is an essential catalyst for tech clustering in Atlanta and gives companies access to a constant flow of new talent. Midtown finished 2017 edging out Buckhead with the city’s strongest office fundamentals – lowest direct vacancy rate and highest average rental rates.
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