After nearly three years of negotiations that included a potential relocation to Buckhead, Munich American Reassurance Co. has decided to stay in Dunwoody.
Munich American, a subsidiary of Munich RE, signed a 65,000-square-foot lease restructuring Oct. 8 at 56 Perimeter Center East. The terms of the deal were not disclosed.
The building in which Munich American stayed was built in the 1970s, and it was one of the first tenants. Rents for class B buildings in the office markets within Dunwoody and Sandy Springs are generally running about $18.40 per square foot, and 56 Perimeter Center was slightly below that line, according to data provided by Jones Lang LaSalle Inc.
The value of Munich which is expected to extend to at least 2020 is estimated at about $12 million, excluding concessions and escalation.
"Munich used its leverage as 56 Perimeter Center's largest tenant. In this market, a large creditworthy tenant like this is the key to a building's value," said Andy Lechter, branch manager of Atlanta's Studley Inc. office, who, along with managing director Josh Hirsh, represented Munich American.
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