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ATLANTA-Cousins Properties Inc. has entered into a $172.5-million joint venture with Prudential Real Estate Investors to develop, own and lease Terminus 200. The figure is the estimated cost of construction of the 565,000-sf office property in Buckhead.
With this deal, Cousins has closed on a $138-million construction loan with Wells Fargo Bank as administrative agent, Regions Bank as service agent, and PNC Bank, Bank of North Georgia and Atlantic Capital Bank as additional participants. PREI acted on behalf of institutional investors.
Matt Gove, vice president at Cousins, tells GlobeSt.com the venture was an opportunity for the developer to partner with Prudential on another project, adding the two already have two successful partnerships.
This venture follows a year in which Cousins has made a number of moves with its capital structure, including expanding its revolving credit facility to $500 million, he says. The company also closed on loans for two large projects, he adds.
"All together it puts us in a great place capital-wise to do other projects in our pipeline and be opportunistic next year," Gove explains. With the building already under construction, Cousins looked at "its capital needs and development pipeline, and a venture like this made sense."
Cousins broke ground on Terminus 200 in June. The 25-story office asset is slated for an August 2009 delivery, as GlobeSt.com previously reported. No leases have been signed for the Buckhead tower at this date. Terminus 200 is rising at the 10-acre Terminus mixed-use project. It joins Terminus 100, a 656,000-sf office tower that delivered in April. That property is 100% leased and its tenant roster includes Bain & Co., Citigroup, CB Richard Ellis, Wachovia and UBS.
All total, Terminus will feature more than one million sf of office, 125,000 sf of restaurant and retail space, and more than 800 for-sale units. The first residential building, 10 Terminus Pl., will have 137 units and is currently under construction. It will deliver next summer.
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