Investment firm KKR has teamed up with Banyan Street Capital to buy the Salesforce Tower office asset in Atlanta for $205m (€185.7m).
KKR said it bought the 631,808sqft, 34-storey, office tower located in Atlanta’s Buckhead submarket, through its Real Estate Partners Americas Fund II (REPA II) fund. Banyan Street was already invested in the asset with a prior partner.
Salesforce Tower recently underwent $14m of upgrades and renovations.
The companies said they are planning an additional $5m in capital improvements which will address enhancements to the fitness centre, retail concourse, outdoor plaza and tenant elevator landings and corridors.
Roger Morales, KKR member and head of commercial real estate acquisitions in the Americas, said: “We’re long term believers in the Atlanta growth story.
“We believe Atlanta’s young and educated workforce and affordable cost of doing business will lead to continued outsized performance, particularly in infill, highly amenitised, increasingly 24-hour submarkets like Buckhead.”
Rudy Touzet, founder and CEO of Banyan Street Capital, said: “We are delighted to partner with KKR in the next chapter of this iconic tower’s history.
“We continue to believe in Atlanta’s momentum and the dynamic ecosystem of the Buckhead office market. Ongoing improvements to the tower will further solidify its position as a top tier destination for talent in Buckhead and across Atlanta.”
A CBRE team have been retained to lease the tower. Banyan Street will manage the property directly.