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Atlanta Business Chronicle
December 1, 2006

2006 NAIOP Awards: Office Development Firm of the Year
Downtown move snags Cousins office honor
by Anya Martin
Contributing writer

One could call it an exciting, even visionary, year for Cousins Properties Inc.

The veteran Atlanta-based developer had intended to move its headquarters intown, from Cobb County to Terminus 100, the first office building in the 9-acre mixed-use development at the corner of Piedmont and Peachtree roads in Buckhead.

But with a high level of leasing activity at Terminus 100, Cousins decided to acquire the ailing One Ninety One Peachtree Tower and move its headquarters downtown instead, giving a much-needed shot in the arm to the building. Giants King & Spalding LLP and Wachovia Corp., along with several smaller firms, abandoned the building earlier this year, leaving One Ninety One with a high vacancy rate.

For its efforts and accomplishments over the past year, the National Association of Industrial and Office Properties (NAIOP) has chosen Cousins as its Development Firm of the Year in the Office category.

NAIOP will present Cousins with the award at an annual ceremony on Dec. 1.

Cousins stood out because of its shift toward mixed-use, and for its move downtown, said Jeff Mixson, NAIOP's vice president of special events and associate vice president at Holder Properties.

"[Cousins'] ability to time the market has been incredible," said John Ferguson, senior managing director with CB Richard Ellis Inc., which is leasing 70,600 square feet at Terminus 100.

"First look at their history with Pinnacle and now Terminus, where they are effectively delivering a trophy asset with 100 percent occupancy," he said. "That's almost unheard of in our market."

Seventy-two percent of the 650,000 square feet of rentable office space at the 27-story tower is committed.

The rental rates Cousins has been able to procure at Terminus also are helping other landlords in Buckhead command higher rates, Ferguson said.

Leasing is going so well at Terminus 100 that Cousins added two floors mid-construction.

The company also pushed up the start dates of its second office tower, the 22-story, 520,000-square-foot Terminus 200, now expected to break ground in mid-2007, and 10 Terminus, the first of three high-rise condominium buildings that is now selling, said Larry Gellerstedt, president of Cousins' Office/Multi-Family Division.

What really pays tribute to the excitement around the project, however, is the quality of tenants.

The three largest tenants to date are CB Richard Ellis; Citigroup-Smith Barney, which has leased 57,500 square feet; and business consulting firm Bain & Co., which has leased 45,900 square feet, Gellerstedt said.

"It's truly going to be an all-star roster of people who have chosen to be in the building," he said.

The development is slated to include at least four premier restaurants, 130,000 square feet of retail, the existing Grand Hyatt hotel, 800 condominiums and significant green space.

"[Terminus] is going to be a true environment where they can choose to live, work and play and not have to get into their cars," Gellerstedt said.

In another 2006 coup, Cousins leased the Inforum to the American Cancer Society, which will lend its name to that building and bring at least 650 jobs to downtown Atlanta.

The developer also already had strong ties to the 1.2 million-square-foot One Ninety One, which it co-developed with Houston-based Hines on behalf of Dutch Institutional Holding Co.

"[Cousins' move to One Ninety One] is a significant statement for downtown that will continue to attract corporate users into that building," Ferguson said.

Cousins purchased One Ninety One from Chicago-based Equity Office Properties Trust, which is leaving the metro Atlanta market, and will move in April.

The building is 58 percent leased, but Cousins is optimistic that it will be able to re-establish the building's momentum and have it 100 percent leased by 2011, he said.

Signs point to now as the time for a downtown renaissance, given the submarket's 8,000 residents, the trend of young professionals and baby boomers moving intown and the development around Woodruff Park and Centennial Olympic Park, Gellerstedt said.

Cousins also will be giving downtown an extra push by leading an effort to create a restaurant district where Peachtree Street, International Boulevard and Ellis Street come together.