Stream Realty Enlisted to Lease Atlanta’s Piedmont Center

CP Group tapped Stream Realty Partners to handle leasing for Atlanta’s largest office complex, which the firm and Austrian lender Bawag Group recently acquired out of foreclosure, the Atlanta Business Chronicle reported.

The 2.2 million-square-foot Piedmont Center changed hands earlier this month in a $200 million credit bid after former owner Ardent Companies defaulted on a $330 million loan. The landlords plan to reposition the 14-building property into a “hospitality-driven campus,” featuring upgraded lobbies, expanded fitness and conference facilities and new food and beverage options.

Stream’s leasing team includes Bryan Heller, Preston Menning, Glenn Kolker, Parker Welton and Lauren Slappey. The group is betting on a rebound in Buckhead, where more tenants moved in than out last quarter, generating 100,000 square feet of positive absorption, according to CBRE.

Still, Piedmont Center is just over 60 percent occupied — below the 70 percent threshold typically seen as stable — leaving significant room for growth.

“Buckhead has been active,” said Stream managing director Heller, noting most deals are driven by firms reshuffling their footprints and looking for landlords who can fund buildouts. “Companies are serious about finding the best option. They’re generally signing up for longer lease terms.”

Piedmont Center is CP Group’s latest bet on Atlanta’s office rebound. The firm owns Bank of America Plaza — the city’s tallest tower — where it’s undertaking a $50 million renovation. It’s also leading redevelopment of the former CNN Center, now branded The Center.

Stream’s assignment kicks off what CP Group partner Chris Eachus has framed as a generational redevelopment play, one made possible by distressed pricing. Piedmont Center once carried a valuation of nearly $300 per square foot, but it traded for closer to $90 per square foot after the foreclosure deal.

The repositioning effort will include planning sessions starting this week, though a retail leasing team has yet to be named. CP Group is betting that Buckhead’s executive appeal, ample parking, access to PATH400 and lower rents relative to trophy towers on Peachtree Road will help draw tenants to the complex.

— Judah Duke