Highwoods Properties announced Thursday that it plans to start construction on a 12-story office building in Atlanta in the third quarter of this year.
The 299,000-square-foot building, to be called Riverwood 200, is expected to open in mid-2017.
The project will be adjacent to Highwoods 502,000-square-foot Riverwood 100 office building, which is now 94 percent occupied. Riverwood 100 was 87 percent leased when the Raleigh real estate investment trust acquired it for $86.3 million in September 2011.
Highwoods has pre-leased 39 percent of the new building to two tenants: Bennett Thrasher, an accounting and consulting firm, and Holder Construction, a construction services company.
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Highwoods is investing $107 million in Riverwood 200, a price that includes the cost to acquire 3.3 acres of land – 2.1 acres of which will be used for the new building.
The Riverwood buildings are in Atlanta’s Cumberland area, where the Atlanta Braves plan to build a new stadium complex that is expected to be completed in 2017.
In a statement, Highwoods CEO Ed Fritsch said the REIT believes the area’s attractiveness to tenants will only increase once the new stadium opens.