ATLANTA-Colonial Properties Trust, a Birmingham-based REIT, has leased 77,500 square feet to Access Insurance Holdings in the Three Ravinia Drive building in Atlanta’s Central Perimeter submarket. The building is a 31-story, 813,000-square-foot class A office property that will be over 90% occupied with the addition of Access Insurance Holdings. It is part of a three-building complex.
Access, an auto-insurance company, took the space for 10 years and will move into the building, which will become its headquarters, on October 1. The lease has provisions that will allow Access Insurance to expand.
Until last November, the ownership of the Three Ravinia Drive building was held in a joint-venture partnership between Colonial and DRA Advisors. Colonial held a 15% ownership stake in 17 commercial buildings in Atlanta and throughout the Southeast with the investment advisor.
At the end of November 2009, Colonial acquired the Three Ravinia Drive building “as part of an unwind of the larger joint venture,” says Jerry Brewer, executive vice president for finance for the REIT. As a part of that transaction (or series of transactions) while Colonial became the sole owner of the Three Ravinia building, it gave up the 15% ownership it had in the other 16 buildings, he says. But it was also released from $141.1 million of mortgage debt, which represented Colonial’s pro rata share of debt owed by the joint venture.
Colonial Properties went public in 1993 and, in 2007, it entered into joint-venture agreements for most of its office and retail properties, says Brewer. More recently, Colonial moved toward getting the majority its assets in the multifamily sector. As of June 30, 2010, Colonial owned or managed 34,230 apartment units and 17.8 million square feet of commercial space.
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