Lincoln Properties has sold the Echo Street West project, an office development that was causing financial strain for the company. The property, which was initially valued at $154 million upon completion, was ultimately sold for a significantly lower price. According to reports from the Atlanta Business Journal, Menlo Equities will be purchasing the property for just over $61 million at a rate of approximately $200 per square foot.
Located at Donald Lee Hollowell Parkway and Northside Drive in Atlanta where English Avenue and West Midtown intersect, this vacant property has been on the market since its completion.
In 2020, Lincoln Property Co. received tax breaks totaling nearly $7 million over a period of 10 years in order to fund construction of this mixed-use project. The development also secured a construction loan worth $135 million from Bank OZK with an expiration date set for April 2025. This loan is backed by both commercial space within Menlo’s planned acquisition as well as a separate multifamily complex featuring ground-floor retail that is not included in this sale.
The recent news reveals that Menlo Equities has acquired an underperforming office project located in Atlanta spanning over 305K square feet after it had been put up on sale by Lincoln Properties due to financial difficulties faced during its ownership tenure.The Echo Street West venture had originally costed around USD$154 Million but ended up being disposed off much below its initial value.According to sources cited by Connect CRE,the San Francisco based real estate firm,Menlo Equities,is believedto have paid slightly above USD$61 Million or about USD$200 per sq.ft.for acquiringthe asset situated along Donald Lee Hollowell Parkway & Northside Drive,in close proximityto English Avenue &West Midtown areas.Menlo plans include repositioningthe distressed asset intoa modernizedoffice destination catering towards today’s corporate tenants’ needs while taking advantageofits strategic location within one of Atlanta’s most sought after commercial hubs.
Lincoln Property Co. had earlier received tax incentives worth USD$7 Million over a decade to develop the project which also secured a construction loan valued at USD$135 Million from Bank OZK,which is set to mature in April 2025.The bank has stated that this loan is backed by both the commercial space within Menlo’s planned acquisition as well as an adjacent multifamily complex featuring ground-floor retail that will not be included in this sale.
