Developer Pitches $187M office, Retail Tower for Dunwoody
A developer is looking to build another large office tower in a hot metro Atlanta market.
Trammell Crow Company representatives pitched the idea for a 22-story office and retail tower at a recent Dunwoody Development Authority meeting.
The Dallas, Texas-based real estate developer broke into the Dunwoody market in 2019 with the construction of the Twelve24 office tower, which sold last year for $195 million. The company seems poised for a repeat.
“The central Perimeter of Dunwoody is kind of the best place for a corporate class A type office building,” Brandon Houston, a Trammell Crow principal, told The Atlanta Journal-Constitution on Wednesday.
Explore Designing for a post-COVID world: Builders tinker with plans for office, home Trammell Crow’s proposal is in its early stages, but Houston told the Dunwoody Development Authority board members that they’re under contract to purchase part of the 246 Perimeter Central Parkway parcel. The Atlanta Marriott Perimeter Center hotel is located on that property, but Houston said the site remains “underutilized.”
The development would not affect the hotel, and he said they would try to work with the city on having the same road entrances and exits to both the hotel and office tower. In addition to roughly 372,000 square feet of rentable office space, the tower’s bottom floor would be set aside for retail businesses, likely a restaurant or two.
“Mixed-use is kind of a strong word,” Houston said. “We certainly believe in food and beverage at the base of our office buildings, so that’s really what this is. It’s more of an amenity.”
The building’s construction would create 450 jobs, and it would support roughly 1,250 office workers once completed. The entire development, which could begin construction in June 2023 and finish by April 2025, is estimated to cost $187 million.
While he didn’t formally ask for a tax abatement at the development authority meeting last week, he said a request would be forthcoming. Twelve24, the 16-story office tower that is now the corporate headquarters for Insight Global, received $9.4 million in tax incentives.
“We’re seeking the same thing here,” Houston said. “It’s really a property tax abatement for the tenants. Because these buildings are on a net lease, the operating expenses are paid for by the tenants. So what this property tax abatement does if we’re able to get it, it just lowers the total cost of ownership for the tenant.”
Trammell Crow filed a special land use permit application for the city while it begins discussions with the development authority and the hotel’s owner. Houston estimated the SLUP process will take roughly four months. Despite the plans only being preliminary at this point, Houston said he was excited about the project’s prospects.
“We’ve gotten experience in the (Dunwoody) market. We’ve gotten some preliminary interest from tenants,” he said. “I think the future of this location and what the City of Dunwoody and the central perimeter has to offer is going to continue to attract corporate class A type headquarters.”