Progress appears to be continuing for the federal government’s efforts to sell a building in downtown Atlanta.
On Friday, the White House’s Office of Management and Budget approved a May 22 recommendation by the Public Buildings Reform Board to dispose of or consolidate 11 federal buildings, including the Peachtree Summit building in Atlanta.
“OMB fully supports increasing the effectiveness and cost efficiency of the federal real property portfolio, and the disposition of these properties furthers that goal,” OMB director Russell Vought said in a news release. “Our shared goal is to effectuate this round of recommendations in a timely manner, and to identify a robust third round of recommendations that consolidates and disposes of property under the Federal Assets Sale and Transfer Act.”
OMB aids the president in overseeing the implementation of his vision for the executive branch, according to the White House website. Specifically, the office’s mission is “to assist the President in meeting his policy, budget, management and regulatory objectives.”
OMB is the latest government agency to support the sale of Peachtree Summit. In March, the General Services Administration also listed Peachtree Summit as suitable for “accelerated disposition,” after including it on an expansive 443 property list that was published and rescinded in March. The reform board is independent from both OMB and GSA.
Although PBRB does not hold the power to actually sell federal property, its recommendations do come with significant weight. Once the Office of Management and Budget approves PBRB’s recommendations, GSA can take on the actual federal real estate process.
Once property is put up for sale, it can be purchased by federal agencies, state agencies, public organizations or others, even by regular citizens.
PBRB’s report last week listed 11 federal properties across the country: 10 for disposal and one for consolidation.
The OMB release notes that, according to review board’sSecond Round Report, “all of the recommended divestments are able to be funded from the sale of previously recommended properties. None of the properties will require new taxpayer inputs.”
In the PBRB report, Peachtree Summit was noted for its “underutilization and significant deferred maintenance.” Currently, the building is approximately 30% vacant. Additionally, full maintenance would cost more than the government estimates the building is worth.
Fulton County appraised the property at $97.6 million. However, PBRB found the building, which houses thousands of workers in several federal agencies — including the Internal Revenue Service, Social Security Administration and the GSA’s Southeast region office — requires $255 million in repairs and upgrades. The estimated cost-saving potential of the sale is listed at $707 million, the board said.
Since returning to office, President Donald Trump has sought to cut government spending, moving to eliminate personnel and federal property holdings. PBRB does note on its website it is a separate entity from Trump’s cost-cutting initiative known as the Department of Government Efficiency.
PBRB was established under the Federal Assets Sale and Transfer Act of 2016 to “identify and recommend federal properties for sale, and to make recommendations for how to streamline the disposal process” of those properties.
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