Standing in the middle of Atlanta’s central business district, a visitor need only look up to see the legacy of 91-year-old architect and developer John C. Portman Jr. The 19.6-million-square-foot Peachtree Center complex, which began in 1960 with the construction of the Atlanta Merchandise Mart (now AmericasMart), includes many of Portman’s landmark buildings. From the opening of the Hyatt Regency in 1967, to the debut of the Westin Peachtree Plaza in 1976 and the Marriott Marquis in 1985, Portman helped cement Atlanta’s status as a top convention city. The evolving mixed-use complex has served as a catalyst for economic development in the area, and that trend continues with the recent revival of Portman’s 230 Peachtree building.
230 Peachtree is a mixed-use redevelopment project that encompasses the new Hotel Indigo Atlanta Downtown, 290,000 square feet of office space, and JP Atlanta, a fine-dining restaurant created in the tradition of Portman’s legendary Midnight Sun. Originally office-only, the building was first developed by his commercial real estate company, Portman Holdings, and designed by his architectural firm, John Portman & Associates, in 1965. When the tower went up for sale in 2014, Portman Holdings saw a rare opportunity to bring the asset back in the family—and capture pent-up demand. The 27-story building is connected to AmericasMart, the wholesale trade mart and trade show complex that Portman also designed, built, and continues to own. “It is a unique experience to be able to revisit a building designed at the beginning of one’s career,” Portman said in a news announcement in January. “I feel quite fortunate to once again be able to contribute to the evolution of downtown Atlanta.”
AmericasMart’s 7.1-million-square-foot campus hosts several trade shows throughout the year, including the Atlanta Apparel Markets and the Atlanta International Gift and Home Furnishings Markets. With immediate proximity, the 206-room Hotel Indigo can tap into a robust stream of demand from tradeshow attendees and vendors who wish to stay on-campus. The boutique-style brand also appeals to the mindset of wholesale traders and those in the fashion and creative industries, explains Charles Pinkham III, vice president of development for Portman Holdings. “From a pure investment side, we had an opportunity to build a boutique hotel, which we feel is a niche product in this market surrounded by these huge convention center hotels, immediately adjacent to the single largest demand driver for hotel room nights in the entire city,” Pinkham says of the prime location. (The property is also next to the Peachtree Center MARTA station.)
The adaptive reuse project has enabled Portman Holdings to command higher office rental rates while spurring additional revitalization efforts in neighboring office buildings. “We’re now renting that space north of pro forma,” Pinkham says. “By investing in this space, we’re pushing the bar and almost forcing the hands of our neighborhoods to invest in their space as well in order to keep up.”
