First round of Perkins Rowe bidding nets no buyers; second round planned
It’s not clear how many interested investors submitted bids to acquire Perkins Rowe earlier this summer. What is known is that the owners of the mixed-use development did not accept any offers in the first round of bidding, which closed June 30, and have opened the process for a second round of bids.
Among those who bid in round one was Atlanta-based developer David Songy, a Louisiana native who has developed properties in major markets in the U.S. and locally owns a portfolio of office buildings that he acquired from Tommy Spinosa, Perkins Rowe’s developer, in 2013. Songy cannot discuss how much he bid on the 711,000-square-foot mixed use development because of a confidentiality agreement. However, he says it wasn’t enough and he’s not bidding a second time.
“We bid in round one and then we became familiar with what the pricing expectations were, so we didn’t bid again,” he says. “It’s a quality development. It’s complicated and challenging to get your hands around. But it seems to be a quality mixed-use project—at the right price.”
It’s hard to say what the right price might be. The property was appraised at $103.4 million exactly two years ago. At that time, however, the property still faced several outstanding legal issues between the bank, which then owned it, and Spinosa. Since then, new ownership and a new management team have come and invested heavily in building out unfinished apartments, completing the parking garage and a rooftop swimming pool, upgrading office and retail space, and purchasing a chiller plant for the air conditioning system.
In May, the property went up for sale for an undisclosed price. Dallas-based real estate firm HFF is marketing the property. The firm and both Perkins Rowe’s owner and manager have declined to comment. However, commercial real estate experts say given the size and scope of Perkins Rowe it is not unusual for a second or even third round of bidding to be held.
“This is a national property, a great property, so I’m not surprised they would hold an initial round to see what the interest level was,” says appraiser Wesley Moore with Cook Moore and Associates. “I don’t know that this was any type of bidding, hard-money auction anyway. I think it was more of a ‘we’re ready to see what interest is out there.’”