Highly complex deal was brokered during the pandemic by Colliers, resulting in exceptional results and client services throughout the 14-month process.
Atlanta – May 5, 2021 – Colliers (NASDAQ, TSX: CIGI), the third largest global commercial real estate and investment management company with operations in 68 countries, has partnered with Big Brothers Big Sisters of Metro Atlanta (BBBSMA) to sell their 1382 Peachtree Street NE in Midtown Atlanta. The building, which was purchased in 2011, has grown considerably in value due to its location at the corner of 17th and Peachtree Streets. The property sold for $8,250,000 to Greystar Real Estate Partners LLC, a global leader in the investment, development and management of high-quality rental housing properties headquartered in Charleston, SC.
Colliers’ Senior Vice President and Principals, Michael Lipton and Jodi Selvey worked hand-in-hand with BBBSMA during this complex transaction to ensure the best outcome for their specific office needs. Being a high-profile site at Peachtree Street and 17th in Midtown, Atlanta’s strongest and most desirable market, the team at Colliers knew it would attract developers, but that they would have to negotiate the small and tightly bordered site, which made it harder to develop.
“We cast a wide net, marketing to users, investors, and developers and received several offers before going under contract in early 2020, right before the pandemic hit,” said Lipton. “While this was already a highly complex deal, the pandemic only complicated things; we had transparent conversations with potential buyers regarding requirements and how to best move forward in such a challenging time. I couldn’t be prouder of the outcome we achieved as a team.”
“We initially sold BBBS’ existing building to the organization back in 2011 with the intention that it would rise in value and serve as a good investment, which was the ultimate result,” said Selvey. “A decade later, we were able to continue our relationship with the client to secure the best-selling price and act quickly during the pandemic to overcome unforeseen challenges. We look forward to continuing our relationship with BBBSMA and to support such an important cause.”
BBBSMA will immediately begin buildout on a new headquarters office at The MET Atlanta, an industrial warehouse space in the West End developed by Carter. “A move to the West End will allow us to be closer to many of the families we serve. It provides easy access to our services, whether participants are driving or taking MARTA,” says Kwame Johnson, President and CEO. “We are looking forward to becoming part of this vibrant neighborhood.”
Colliers showcased its exceptional client services by leveraging their good working relationship with the purchaser and executed the first of 10 extension amendments over the past year. As the financial markets began to stabilize and the city zoning and permitting started to reopen, Greystar made progress with its design and permitting applications. To optimize the design and ingress and egress, Colliers worked with Greystar to negotiate easements and reach an agreement over an undocumented alley, with two other parties including a tenant that was adjacent but not utilizing its space. This took several months over the summer and fall, while design and approvals were simultaneously being sought.
Additionally, as Greystar wanted access to the building at closing, Colliers had to negotiate a lease for BBBSMA’s new space simultaneously, with a contingency that was based upon actual closing of the sale of their building. This too required transparency with the owners of the new property where BBBSMA was going to lease, The Met, as well as lining up architects and contractors to be ready to begin work as soon as the deal closed. All told, Colliers executed 10 amendments with Greystar during the 14 months from contract to closing, and the team was able to close despite the market and financial stresses caused by the pandemic. All parties worked incredibly hard and collaborated to tackle the various issues that each party had at various times – many of which were unexpected, and others caused by the “black swan” event of the pandemic.