Colonial Properties Shifts to Multifamily, Sells Three Ravinia Office Tower for $144M
- May 24, 2013
Rumors that CBRE Global Investors may have purchased the 31-story Three Ravinia Drive office tower could be confirmed, as owner Colonial Properties Trust just announced selling the building for $144.3 million.
CBRE Global Investors—currently Atlanta’s largest owner of office buildings—is not the first company to emerge as a potential buyer; Crocker Partners also came close to buying Three Ravinia a couple of years ago, but fears that anchor tenant InterContinental Hotels Group might not renew its lease drove them away from the deal.
Originally developed by Hines in 1991, Three Ravinia Drive has been a part of Colonial Property Trust’s portfolio since February 2002. The 31-story office building encompasses an impressive 813,145 square feet of space and features exclusive amenities, such as the largest indoor botanical conservatory in the Southeast—which spreads over seven stories.
The Class A office building is adjacent to the Crowne Plaza Hotel, access being provided to three top restaurants, the Grand Ravinia Ballroom, and a state-of-the-art amphitheater. A walkway connects Three Ravinia Drive to the Ravinia Club, offering spa, fitness, conference and concierge services.
Birmingham, Ala.-based Colonial Properties Trust was looking to dispose of the property in order to shift focus towards the multifamily industry. “The disposition of Three Ravinia is a significant step in the execution of our multifamily-focused strategy and strengthens the company’s balance sheet,” stated Thomas H. Lowder, chairman and chief executive officer of Colonial Properties. “Following the disposition, 95 percent of the company’s net operating income will be generated from our multifamily portfolio.”
According to company officials, the property was unencumbered, and sales proceeds were used to repay a portion of the outstanding balance on the company’s unsecured credit facility. On March 31, 2013, Three Ravinia Drive was 92.1 percent occupied.
Image courtesy of Hines
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