The Birmingham Business Journal reported on one of our buildings today securing a defense contractor as a tenant.
A defense contractor has leased nearly half of a previously vacant office building.
Kratos SRE, a group within Kratos Defense & Security Systems Inc. (NASDAQ: KTOS), leased 43,001 square feet of office space at 801 Tom Martin Drive, off Lakeshore Parkway, according to a release.
Casey Howard and Lacey Scott of Harbert Realty Services represented the landlord in the deal. Sam Carroll and Matt Gilchrist of Graham & Co. represented the tenant.
The building has been vacant since 2021, Howard confirmed to the BBJ, after the Internal Revenue Service moved its Birmingham office to The Plaza building downtown and the Small Business Administration moved to the Two North Twentieth building by Morris Avenue upon the expiration of its 15-year lease.
The building sold for $2.65 million in December. The buyer, 801 TM Holding LLC, is associated with Chris Reebals of Christopher Architecture & Interiors and Premium Property Trust. Carroll and Gilchrist represented the seller in the December deal, a company associated with Shamrock Investments LLC, who bought the property for $4.7 million in 2017.
The two-story, Class B office building is 90,504 square feet and sits on 12.5 acres, public records show. The property was valued at $6.3 million for tax purposes in 2024, more than a $1 million increase from tax year 2023.
According to Harbert Realty, the building was renovated in 2020 to improve lighting, HVAC, roofing, security and landscaping. The asking lease rate in $25 per square foot.
“The Lakeshore Parkway and Oxmoor areas of Birmingham are attracting significant business investments and we're excited to be a small part of that growth,” Howard said in a release. “We have had strong interest from several large companies in leasing this property and are looking forward to announcing additional new tenants soon."
Kratos SRE is a part of Kratos’s Defense & Rocket Support Services Division that tests hypersonic materials and structures for extreme environments. In February, the U.S. Air Force awarded Kratos SRE and other companies a $499 million contract for “the design, build, test and delivery of functioning anti-tamper solutions,” according to Department of Defense disclosures.
Kratos SRE operates a neighboring facility at 757 Tom Martin Drive. In 2022, the Birmingham City Council approved $228,000 in incentives for Kratos SRE to bring 76 jobs and a $26.6 million capital investment to Birmingham.
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