Parkside Partners buys Atlanta's 1355 Peachtree tower, plans seven-figure renovation

Parkside Partners bought The Peachtree, the 21-story building at 1355 Peachtree St. in Atlanta, with Coastal States Bank providing acquisition financing. The seller, a Banyan Street Capital-led joint venture represented by Eastdil Secured Savills, did not report a price, but the asset is roughly 345,000 square feet and about half leased.

The plan is a seven-figure renovation aimed at the tenant experience — a coffee bar and other amenities among the upgrades — and the standard first step in a value-add office purchase: spend on the common areas, then sell the empty half of the building to tenants. Eli Green and Kyle Jenks will lead leasing in-house.

The seller's basis is on the record even where the trade price is not. The Atlanta Business Chronicle reports the Banyan Street joint venture bought the building for $60.3 million in 2015, which against its current size works out to roughly $175 a square foot. That is a 2015 number in a market this publication has argued no longer has one clearing price, only trophy rent rolls and buildings whose value depends on what the next owner can lease into them.

Parkside's record on the same street explains the conviction: it delivered the nearby Boundary project at 1389, 1401 and 1409 Peachtree St., renovated 1280 West Peachtree St. into the headquarters for Interface Inc., and renovated 1438 West Peachtree St., which sold in 2021.

The other side of the trade tells a different story. PWD's records show Banyan Street in August as the borrower on a $53.5 million Wells Fargo refinancing of the Doral office campus, and our read of that deal was that office debt had returned only for the repositioned, with the capex spent and the lease-up proven. This time Banyan sells the pre-capex asset — 21 stories, half vacant — to a buyer financing the purchase with bank debt, which suggests Coastal States Bank is underwriting Parkside's renovation plan as much as the rent roll that exists today.

Roughly half the building is empty, the renovation is a seven-figure line item, and the leasing sits on Parkside's own payroll. The next number that matters at 1355 Peachtree is a signed-lease count rather than another loan.