In a prepared statement, Prentiss says it lost about $1.8 million on the transaction. The REIT listed the loss in its second-quarter financials this year, the statement says.
Prentiss plans to use the sale proceeds to invest in its core markets in Washington, DC, southern and northern California, Austin, TX and Dallas, and Chicago.
"Due to the age of most of the portfolio, the company believes that significant capital improvements would be necessary to maintain the marketability of the portfolio," the statement says. The portfolio is about 80% occupied. An additional 49% of the net rentable sf is scheduled to expire in 2004 and 2005.
The buildings in the Cumberland Office Park at 2690 Cumberland Parkway in northwest Atlanta were constructed between 1972 and 1998, with 501,450 sf built prior to 1981. After buying the property in 1991, Prentiss applied for and received local government approval for rezoning the site to allow up to 1.1 million sf of additional development.
Prentiss Properties owns interests in 138 operating properties totaling 17.8 million sf. Through various management subsidiaries, the company manages 29.6 million sf of office and industrial properties by Prentiss, its affiliates and third parties.
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