J.P. Morgan Asset Management, Cousins form joint venture on Buckhead’s Terminus 100, 200

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J.P. Morgan Asset Management has formed a joint venture onTerminus 100 and 200, the two Buckhead office towers that Cousins PropertiesInc. developed during themarket’s most recent building boom, according to an online story today by theAtlanta Business Chronicle.

The 50-percent stake J.P. Morgan took inboth towers underscores the strong leasing activity at Terminus 200 over thepast two years, including new tenants such as the law firm Greenberg TraurigLLP, and the increasing confidence in Buckhead’s Class A office market, theBusiness Chronicle reports.

A view of the Terminus 200 building in Buckhead

Terminus 100 and 200 were part of a wave of new Buckhead towersfinished between 2007 and 2010 as the economy slowed and demand for officespace weakened, pushing the market’s vacancy to about 25 percent.
The 25-story Terminus 200 – the second ofthe Terminus-mixed-use project’s office towers — has reduced its vacancy toless than 10 percent today, according to market data. Buckhead’s Class A directvacancy has fallen to about 13 percent.
“It’s very exciting to affirm ourconfidence in the steadily improving Buckhead submarket with the Terminus 100and 200 transactions,” Cousins’ CEO Larry Gellerstedt  told the Business Chronicle.
“This is a great move on J.P. Morgan’s partand validation that Buckhead is making a full recovery,” Will Yowell, a vicechairman with commercial real estate brokerage CBRE Inc. told the ABC.
J.P. Morgan is using its roughly $18billion core fund to form the joint venture. Prior to the agreement, Cousinspurchased the remaining 80 percent interest in Terminus 200 from a MorganStanley Real Estate Investment fund.
Terminus 200 was valued at $164 million, or $290 per squarefoot. Terminus 100 was valued at $209.2 million, or $320 a foot, according tothe ABC.