ATLANTA — Around 10 years after it was reimagined as a tech hub, Downtown Atlanta’s historic Flatiron Building is on the market.
The office tower, standing 11 stories on Peachtree Street, was listed on commercial property services website LoopNet earlier this week. Around 67% of space in the roughly 42,000-square-foot tower is leased, according to an offering memorandum.
Built in 1897, the Flatiron is one of the oldest buildings in Atlanta. Its name comes from its narrow and triangular shape. Existing tenants in the building include the City of Atlanta's Women's Entrepreneurship Initiative and Alta Planning & Design. Land of a Thousand Hills Coffee operates a cafe on the bottom floor.
An affiliate of private equity firm Lucror Resources is the owner and acquired the building in October 2014 for $1.95 million. It completed around $12 million in renovations to turn the property into a hub for startups and small businesses, along with putting the building on the National Register of Historic Places. The building reopened in 2016 as "FlatironCity."
The reason for the landlord’s decision to sell is unknown. But it is likely testing out the market ahead of anticipated decreases in the federal funds interest rate, one source with knowledge of the market said.
Changes Downtown could also be a motivator.
For one, another startup-focused real estate effort began to take shape across the southern edge of Downtown roughly one month ago. A team led by entrepreneurs David Cummings and Jon Birdsong has begun acquiring dozens of properties across Mitchell, Broad and Peachtree streets to transform the neighborhood into a tech ecosystem with offices, restaurants and housing.
Another change is the catalytic growth of Georgia State University, which has expanded its physical footprint, along with its student body, since Lucror's acquisition in 2014.
Interest exists for the historic building. Two academic institutions have inquired about the Flatiron in the past, the source said.
Michael Palazzone and Tim Head with Lee & Associates are marketing the building.
