Firm marketing space in city's tallest building
Due to bank merger, 200,000 square feet are available
Sunday, June 03, 2007
DAWN KENT
News staff writer
A commercial real estate firm is now marketing nearly half the office space in
Birmingham's tallest building, a move that could draw new companies to Alabama
or existing suburban businesses into the city center, a broker says.
Sandner Commercial Real Estate has been hired to lease about 200,000 square feet of Class A office space in downtown's Wachovia Tower, a 34-story, 514,902-square-foot space at Fifth Avenue and 20th Street North.
A recent $22 million renovation project included improvements to the lobby, restrooms, elevators and heating and cooling systems in the former SouthTrust Tower, renamed after Charlotte-based Wachovia Corp. acquired SouthTrust Corp.
Downsizings related to the banks' merger left vacancies in the tower.
Joe Sandner III, principal of Sandner Commercial Real Estate, said downtown projects, including ongoing condo development and plans to put luxury hotels on the former Federal Reserve property and the former Regions Financial Corp. headquarters, are making the city center a prestigious office address.
"I do believe, where we're at today, you're going to see people move from the suburbs to downtown," he said. "A lot of people are really focused on downtown now."
If so, it would reverse a trend that has seen downtown companies exit for the suburbs, such as Southern National Gas' plans to reside in Homewood's new Colonial Brookwood Center.
Sandner also says there's no question that the Wachovia Tower space could be an economic development tool for a firm looking to relocate or expand in Alabama, especially since it includes large blocks of contiguous space.
Space available includes 10 full floors. The largest contiguous block of space covers 101,000 square feet. Another contiguous block covers 67,000 square feet.
The Wachovia Tower is now at 62 percent occupancy. Its largest tenant is Burr & Forman LLP, which amended its lease in 2006 to expand to 121,933 square feet and add 15 years to the contract, securing its downtown location through 2022.
Other tenants include Baker Donelson Bearman Caldwell & Berkowitz PC, KPMG International, Merrill Lynch and Wachovia.
The tower is owned by a partnership of Atlanta-based Barry Real Estate Cos. and an investment fund managed by VEF Advisors LLC that acquired the property in 2004.
The renovated space also is an opportunity to be in a like-new building, Sandner said. He expects rates for the space to be competitive with existing rates for downtown trophy office buildings of $21.50 to $24 per square foot.
Sandner Commercial Real Estate was established earlier this year following Sandner's departure from the former Eason, Graham & Sandner Inc., now known as EGS Commercial Real Estate.
Sandner, his son, Joe Sandner IV, and John Hennessy are part of the new company.
Operation New Birmingham President Michael Calvert said large blocks of space are attractive, because that's what many businesses are looking for these days.
"Having a large block of space is particularly valuable," he said. "It does present a special opportunity."
E-mail: dkent@bhamnews.com