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ATLANTA — Colonial Properties Trust (NYSE: CLP) has sold Three Ravinia, an 813,748-square-foot office property in Atlanta, for $144 million. CBRE Strategic Partners U.S. Value 6, a fund sponsored by CBRE Global Investors, acquired the 31-story, Class A asset. As of March 31, Three Ravinia was 92.1 percent occupied. Sales proceeds were used to repay a portion of the outstanding balance on the company’s unsecured credit facility.
“The disposition of Three Ravinia is a significant step in the execution of our multifamily-focused strategy and strengthens the company’s balance sheet,” says Thomas Lowder, chairman and CEO of Birmingham, Ala.-based Colonial Properties Trust. “Following the disposition, 95 percent of the company’s net operating income will be generated from our multifamily portfolio.”
The property is strategically located in Atlanta’s Central Perimeter submarket, which provided an attractive opportunity for the buyer. The Central Perimeter submarket contains the largest concentration of office space in the Southeastern U.S., according to CBRE Global Investors. According to a first-quarter office report from Jones Lang LaSalle, the Central Perimeter submarket includes more than 22 million square feet of office space. Of that inventory, 17.3 million is Class A office space.
“The Perimeter submarket experienced significant net office absorption in 2012 and is projected to have accelerated job growth in the near-term, so we are very pleased to be able to acquire this iconic asset,” says Vance Maddocks, president of CBRE Strategic Partners U.S. “With our strength of ownership and the implementation of our 5-Star Worldwide service and amenity program, we will be able to add value for tenants and our investors.”
CBRE Global Investors is a global real estate investment management firm with $90.7 billion in assets under management as of March 31.
Colonial Properties Trust is a real estate investment trust (REIT) that focuses on the acquisition of multifamily properties, and the management and development of select assets in the Sunbelt region. As of March 31, the company managed or had partial ownership in 35,181 apartment units and 2 million square feet of commercial real estate. The REIT’s stock price closed at $23.40 per share on Friday, up from $20.43 per share a year ago.
— Brittany Biddy