Cushman & Wakefield announced today that Bank of America Plaza landlord CWCapital Asset Management will receive the benefits of approved tax incentives over a 10-year period, which will enable new and existing tenants to realize tax savings over a 10-year period. In combination with the property’s existing Opportunity Zone designation, the tax incentives provide tenants of Atlanta’s iconic 55-story office tower the opportunity to realize substantial savings.
Property management company Parkway Properties, leasing agent Cushman & Wakefield, and CWCapital worked together to obtain approval from the Development Authority of Fulton County (DAFC) and the Fulton County Board of Assessors for 10 years of incentives resulting from the valuation of the landlord’s leasehold interest in the property after conveying the fee interest to the DAFC for the 10-year lease term. Cushman & Wakefield’s Lisa Dunavin and Will Porter lead the leasing efforts at the 1.3-million-square-foot tower.
“We’re thrilled to be able to offer this new incentive at Bank of America Plaza. The tax incentives are a win for our tenants and for the city, which will benefit from the capital investments CWCapital is making and the new businesses locating to Atlanta’s premier trophy building,” said Lisa Dunavin. “The program provides new and existing tenants the opportunity to receive tax savings of approximately $1.80 per square foot starting in the first year of the program.”
The tax savings start at 50 percent in year one of the lease term and decrease by five percentage points each subsequent year, down to 5 percent in year 10 after which the incentives would conclude and 100% of taxes would be collected.
In addition, the property is located in a State of Georgia-approved Opportunity Zone, a designation that enables tenants to receive a tax credit of up to $3,500 per each new job created, representing potential savings of up to $7 per square foot for Bank of America Plaza tenants.
“The combination of a world-class office building offering great amenities, a central location and strong ownership along with these financial incentives creates an unrivaled opportunity for both local and out-of-state companies to relocate to the building,” said Will Porter. “The availability of one of the largest blocks of available space in Atlanta – up to 600,000 square feet in total – creates the ideal environment for the next economic development win for the city.”
The owner has begun an investment in major capital improvements to be completed in 2014, including renovations to the building’s lobby and adjacent west wing space, including the cafe, sundry shop, fitness center and conference center.
Located at 600 Peachtree Street between Midtown and Downtown, the Class A tower provides excellent accessibility to Interstates 75 and 85, Georgia 400, and the North Avenue MARTA rail station. The building also features a 17,000-square-foot executive health club, a 4,000-square-foot theater-style conference center, reserved parking, and 24/7 security.
Steve Webb – The Gove Network
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