Franklin Street Properties Corp. REIT has recently sold Pershing Park Plaza for $34 million, resulting in a loss of over $11 million. The 160,000-square-foot building located at the intersection of Peachtree and West Peachtree streets was originally purchased by Franklin Street in 2016 for $45.5 million.
The buyer of the nine-story building is 28th Street Ventures, as announced by Franklin Street in their third-quarter earnings report. This sale is part of the company’s strategy to reduce debt through selling select office properties; with this transaction alone contributing $27.4 million towards debt repayment.
According to George Carter, CEO of Franklin Street Properties Corp., their directly-owned real estate portfolio currently consists of 15 properties totaling approximately 5.0 million square feet; however, as stated in their quarterly report from September 30th,2024 compared to December31st ,2023 there has been a decrease in leased percentage from approximately74%to70%. This decline can be attributed to two property dispositions and lease expirations during this time period.
In summary,FranklinStreetPropertiesCorp.REIThasrecentlysoldPershingParkPlazafor$34million,resultinginlossover$11million.This160000squarefootbuildinglocatedattheintersectionofPeachtreeandWestPeachtreestreetswasoriginallypurchasedbyFranklinStreetin2016for$455million.Thebuyeroftthenine-storybuildingis28thStreetVenturesasannouncedbyFranklinStreethirdquarterearningsreport.Thissaleispartofcompanysstrategytoreducedebtthroughsellingselectofficepropertieswithtransactionalonecontributing274millliontowardsdebtrepayment.AccordingtoGeorgeCarterCEOofFSP,theircurrentdirectlyownedrealestateportfolioconsistsof15propertiestotalapproximately50millionsquarefeet;however,asstatedintheirquarterlyreportfromSeptember30th2024comparedtoDecember31st2023therehasbeendecreaseleasedpercentagefromapproximately74%to70%.Thisdeclinecanbeattributedtotwopropertydispositionsandleaseexpirationsduringthisperiod.
