The JV buy-in has been structured in two takedowns with JPMorgan and a third with an unidentified institutional partner for 16% of Crescent's remaining 40% in part of the package. When the dust settles, Crescent will have generated $316 million in net cash proceeds and earned a gain of $211 million. Overall, the REIT will hold onto a combined 76% stake and remain in place to lease and manage all assets. Crescent also will receive promoted interests based upon long-term performance measures.
Crescent intends to flip 16% of its 40% remaining balance in the Crescent, Houston Center and Post Oak Central, a 5.6-million-sf package valued at $898.5 million. All the REIT will say at this stage is it's in talks with another institutional partner for the minority split.
Meanwhile, Crescent and JPMorgan remain at the bargaining table over another 2.3 million sf--Trammell Crow Center and Fountain Place. Talks have reached the final stage for a 76% interest in assets valued at $320.5 million. Crescent's plan is to remain a 24% stakeholder in the CBD properties in Dallas.
"One of our key strategic goals was to more than double the size of our previous joint venture portfolio by the end of 2005," Denny Alberts, Crescent's president and COO, says in the release, "and we are ahead of schedule in doing just that." The trio of transactions is slated to close before the calendar flips.
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