In a major late-2005 Atlanta transaction, Newmark Managing Principals Bert Sanders and Patrick Duffy, and Senior Executive Vice President Neal Golden, represented a major national law firm in a long-term lease that anchors a new office building in the metro area’s highest-profile mixed-use development.
Under the terms of a 15-year lease, the Nelson Mullins Riley & Scarborough LLP law firm committed to approximately 100,000 square feet on five floors at 201 17th Street, a 17-story/350,000-square-foot office tower now underway in Atlantic Station, the 140-acre mixed-use mega-redevelopment of a former steel mill facility located in the urban core of metro Atlanta, across the I-75/85 Downtown Connector from the vibrant Midtown submarket.
The firm engaged the Newmark team in its search for a new facility for its Atlanta office in early 2005. During the remainder of the year, the principals fielded proposals from a number of developers, all eager to have a tenant of the caliber of Nelson Mullins anchor new buildings.
In the end, 201 17th Street won out over several other competing buildings, including a tower proposed by developer Holder Properties, which had previously developed the firm’s headquarters building in Columbia, S.C.
A number of factors entered into the decision-making process, according to Sanders.
“The beneficial economics of the deal offered by the landlord, as well as the opportunity for the firm to have input on the design and layout of a new office building were also important,” said Sanders. “They also were very impressed with the extensive amenity base of Atlantic Station,” a live-work-play array which includes nearly 2,300 residential apartment, condominium, townhome, duplex and single-family units; an extensive retail/services lineup anchored by a Dillard’s department store and an IKEA home furnishings outlet; an entertainment component anchored by a 16-screen Regal Cinemas; and a multi-cuisine line-up of restaurants.
Another important factor was Nelson Mullin’s ongoing desire to be in a “green” building, as defined by the Washington, D.C.-based U.S. Green Building Council (USGBC), a coalition of leaders from every sector of the building industry that works to promote buildings that are environmentally responsible, profitable and healthy places to live and work. The council’s Leadership in Energy and Environmental Design (LEED) certification system rates buildings on their adherence to environmental standards that include sustainability, indoor air quality, and use of water and energy, and 201 17th Street is one several major office buildings in the Atlanta metro area designed to meet these standards.
Sanders estimates that Nelson Mullins will enjoy some $13 million in occupancy cost savings as a result of this transaction. The law firm, which currently has some 360 attorneys operating out of offices in ten cities, including Boston, Washington D.C. and Atlanta, will be moving into its new Atlantic Station location when 201 17th Street opens in mid-2007.
Mike Shelly, senior vice president of Atlanta-based Carter, represented owner/developer One Market Street Office LLC, a partnership comprised of AIG Global Real Estate Investment Corp. and Jacoby Development Inc., in the transaction.
New York-headquartered Newmark and London-based partner Knight Frank Newmark operate from over 140 offices in established and emerging property markets on six continents. Last year, the firm handled transactions valued at over $41 billion with annual revenues of over $545 million. With a combined staff of 4,500, this major force in real estate is meeting the local and global needs of owners, tenants, investors and developers worldwide. For further information, visit www.newmarkkf.com.