POV - Tower Place 100
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Transcript of POV - Tower Place 100
HOW WE SEE IT
TOWER PLACE 100 Investment Opportunity
TOWER PLACE 100 BUILDING DIAGNOSTIC
LOCATION AND AMENITIES
Tower Place will be positioned within the Buckhead submarket as the finest business environment. No other Buckhead
office property possess the competitive advantages of Tower Place. We see tremendous economic upside growth. Our
commitment of Legendary Service is prepared to unlock this economic value for our investment client.
PIEDMONT RD
LENOX RD
PEACHTREE RD
GA 400
91
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HOTELSIntercontinental Grand HyattMandarinWestinEmbassy SuitesDoubletreeMarriott Courtyard
54321
RETAILOrvisLenox MallPhipps PlazaBuckhead Atlanta4
321
FITNESSLA FitnessThe FourmOrangetheory3
21
RESTAURANTSBistro NikoBrick TopsIndustry TavernThe PalmChipotle On The BorderFarm BurgerJimmy JohnsStarbucksCaribou
7654321
1098
ATTRIBUTES• Three easy points of
ingress and egress to
the property and the
parking deck exclusive
to Tower Place 100
• Within two blocks of
popular restaurants, retail,
hotels and MARTA
• Floor to ceiling glass
facilitates exceptional
views and provides
natural light for
interior workspaces
• Generous parking
ratio of 3/1000
accommodates workspace
densification trend
CHALLENGES• Weak wayfinding and
property graphics
• Outdated lobby and
common area finishes
• Uninviting and drab
ingress and lobby
experience deters social
interaction at the foot of
the building
• Inefficient HVAC system
• Uninspiring property
operating practices
RECOMMENDATIONS• Update the lobby to
create vitality and sense
of community
• Create a CoLab Place
for tenant-to-tenant
interaction
• Add a fitness center with
classes in less desirable
space
• Relocate the smoking
area to reclaim the
smoking tent for a
positive experience
THE FACTS• 613,821 SF• Built in 1974,
renovated in 1994• 8% vacancy
2015 - 95,4902016 - 97,1752017 - 53,1842018 - 62,1452019 - 70,689
• Near-termRolloverSF
4
INVESTMENT RATIONALE
TRANSWESTERN CAPITAL IMPROVEMENT RECOMMENDATIONS
Reduce overall dark red marble on vertical surfaces. Perhaps replace a portion of the red stone with a white/light finish. Likely retain the dark stone columns.
Activate the base of the building and courtyard to engage the workforce. Create inviting outdoor people gathering places. Relocate and reclaim the smoking tent to establish a superior workplace environment.
Remove the dated green neon and light the top of the building with LED bright white light to create a beacon of light for all of Buckhead to see. Evaluate existing building lighting to determine potential utilization benefits.
TRANSWESTERN UNLOCKS ECONOMIC VALUE
Tower Place 100 and Tower Walk are the geographical and emotional epicenter of the Buckhead business district. Since
its completion in 1974, the building has maintained its status as an Atlanta icon through many economic cycles. The
property now needs cosmetic improvements and several additional asset enhancements in order to remain competitive in
this ever-changing real estate landscape. Among other features, the adjacent vacant retail and underperforming theatre
represent opportunities Transwestern is prepared to first evaluate and then execute on behalf of the new sponsorship.
Tower Place has more potential to be re-positioned to reap economic upside and outsized return on investment than
any other office asset in Buckhead.
NOI will grow further by re-setting the average in-place rent of $25+/- to the then higher rental rate when each lease
renewal occurs. Our recommendation is to communicate planned property improvements to reinforce the value
proposition and tangible benefits tenants will receive in exchange for the new rental price point. Transwestern brings
a “Curator” mindset and approach to operating the building. This means our Property Management team intentionally
meets with each tenant in the building to understand what drives their individual business success. We then look to
discover what other companies located within the building might match up well to provide services to each other.
Our goal is to foster connectivity and collaboration between our tenants to help them grow their business by working
together. This ecosystem creates sticky tenants. Loyal customers ( tenants) then become Advocates to their vendors
and business relationships which delivers new prospective tenants to the property which reinforces the ecosystem we
designed.
Tower Place represents a rare opportunity
to transform an existing under achieving
property into a vibrant workplace to reflect
how the workforce of today and tomorrow
prefer to work. We call this Workstyle.
Tower Place 100 requires incremental
property improvements while Tower Walk
needs to be fully evaluated to determine
highest and best use. The goal is to then
incorporate each of these components
to collectively create a premium Live,
Work and Shop environment. Executing
these ideas will optimize the workforce
productivity, foster sticky tenants, create
a complete walkable environment and
deliver sustainable NOI for the investor.
BUCKHEAD CLASS A•Absorption410,000SF•Vacancy14.2%
A PREMIER SUBMARKET•Atlanta’spremierbusiness,shoppingandresidentialdistrict,offeringconvenientdining,entertainment,employment
and rapid transit •“Oneofthetoptenwealthiestzipcodesinthenation,withahouseholdincomeinexcessof$341,000peryear.”
– Forbes
POPULAR DESTINATION•Upscaleneighborhoods,fineshopping,andanactivenightlifemakeBuckheadoneofthemostpopulardestinations
in Atlanta and the entire Southeast•Oneofthenations“10TopAffluentCommunities”for“someofthemostbeautifulmansions,bestshoppingandfinest
restaurants in the southeastern United States.” – Robb Report
TOP BUSINESS CENTER•HometometroAtlanta’slargestconcentrationofexecutivedecision-makers•Localityandreputationattractstenantsfromothersubmarkets•Nearly20millionSFofhigh-riseofficespaceandluxurycondotowersdominatethePeachtreeRoadcorridor,
exemplifying the ultimate live, work, play community
INDUSTRY MIX•BuckheadisAtlanta’sfinancialhubwithmanyinsurancefirms,stockbrokeragesandotherfinancialservicefirms•Largenumberofcreativeandprofessionalservicefirmsintheregion,suchasadvertisingagencies,publicrelations
firms, accounting companies and more•Hometopremiertenants,includingPulteHomes,GreenbergTraurig,LockeLordBissell&Liddell,NorthwesternMutual,WellsFargo,NorthHighland,SonyEricsson,JPMorganChase,JWT,Carter’sandSunTrust
HIGH GROWTH MARKET•IntersectionsofLenox,PeachtreeandPiedmontRoadsareepicentersofinternationallyrenownedshoppingdistrict:
1,400 retail units where shoppers spend more than $1 billion a year•Morethan50high-riseresidentialbuildings,almostone-thirdofthecity’stotal•BuckheadAtlanta-±$1billionmixed-usedevelopment,featuresupscalemixofretail,residentialandofficespanning
six city blocks, or more than 1 million SF
MARKET INDICATORS•16million+SFClassAoffice,largerthanMidtown•Lackofspaceallowsownerstopushrents•ClassAfullservicerentsaverage$29.25PSFwith$11-12PSFoperatingexpenses•Newconstructioncostislikely$370+PSF,implies$30netor$40grossrent
Transwestern3340 Peachtree Road, NE
Suite 1000Atlanta, GA 30326
404.842.6600
www.transwestern.com
BUCKHEAD SUBMARKET
Bo JacksonSenior Managing [email protected]