July 13, 2007

Real Estate Notes

SPG catches Quintiles
by Jill Lerner

Quintiles Transnational Corp.'s plan to consolidate at the former AT&T site in Marietta is a big win for one local real estate company -- Solution Property Group LLC.

Quintiles, a drug development company based in Research Triangle Park, N.C., announced in early July it will consolidate its Atlanta facilities into the former AT&T call center at Terrell Mill Road and Interstate 75.

The pharmaceutical company has signed a 10-year lease for just over 201,000 square feet, and will spend $19 million to expand its presence here.

The deal more than doubles the space now occupied by the company in various Atlanta locations, and allows for the addition of about 400 jobs through 2011.

Atlanta-based SPG, whose principals are Eben Hardie and Mal Hill, bought the 253,000-square-foot former AT&T building, 1600 Terrell Mill Road, almost exactly one year ago for $10 million.

The Quintiles deal brings the building to more than 90 percent occupancy.
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Hill handled the transaction for SPG and Howard Sadkin of Raleigh, N.C.-based Corporate Realty Advisors represented the tenant, assisted locally by Dale Karrh of Carter.

The Quintiles lease, like SPG's deal to acquire the building in the first place, evolved from an existing relationship.

Hill and Sadkin had done a lease together in the early 1990s.

SPG's deal to acquire the site last year evolved from Hardie having done a lease in the early 1980s with a different broker, Duke Doubleday at Ackerman & Co., who brought the deal for the old AT&T site to SPG's attention.

"The business is all about relationships," said Hardie. "It's the classic example that being around [for a while] helps sometimes."

Hardie credited the Georgia Department of Economic Development and Cobb County and chamber officials with helping make the deal happen.

Solution Property Group has agreed to $5 million in tenant allowances and plans to invest an additional $2 million in the building, as part of the deal, Hardie said.