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Colonial Faces Challenge With Retail Part of $50M Purchase

ATLANTA-The 451,920-sf of office in five buildings are 90% occupied. Apollo Real Estate Advisors LP of New York sold the total 564,120-sf property to the Birmingham, AL-based REIT for $88.63 per sf, below replacement cost of an estimated $150 per sf, construction industry estimators tell GlobeSt.com.

By Marita Thomas | Updated on May 23, 2002

ATLANTA-Colonial Properties Trust’s purchase of the Colonnade in Birmingham, AL puts the 564,120-sf property in the hands of a local owner for the first time. It also sets the stage for a major revitalization of the retail sector of the property.

The Colonnade encompasses 451,920 sf of office space in five buildings and 112,200 sf of retail space on nearly 100 acres at Interstate 459 and U.S. 280. The Shops of The Colonnade are 61% occupied and include a vacant movie theater. By contrast, the office space is 90% occupied.

S. Lee Robertson, Colonial’s senior vice president of finance, tells GlobeSt.com the trust will use its local market knowledge and area retail expertise, “to exploit the upside potential of the property’s retail sector.”

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