“The property is undergoing extensive renovation and improvement by the tenant which will transform the property into a state-of-art corporate campus,” Ponticello says. “This was a non-functioning property for years and Southern Company's relocation to the property was a huge win for the city of Birmingham, its economy, and the current owners.”

Southern Company

ATLANTA—3535 Colonnade, a 669,438-square-foot, class A office campus in Birmingham, AL, has traded hands. The sale price: $131.6 million.

Zurich Alternative Asset Management sold the office asset to Los Angeles-based Griffin Capital Corporation. Guy Ponticiello, Bruce Westwood-Booth, Jeff Shell, Maury Vanden Eykel and Kyle Sals of CBRE's Chicago office, represented the seller.

“This was an excellent opportunity for Griffin to acquire an exceptional headquarters office building that is 100% leased to a subsidiary of Southern Company, an 'A-'rated credit tenant subject to a 28-year triple net lease,” Ponticiello, senior managing director, CBRE Capital Markets, tells GlobeSte.co. Southern Company Services is the sole occupier of the building, which serves as the headquarters for the electric corporation.

The office property had remained vacant for nearly a decade until the lease to Southern Company Services in March 2016, which was one of the largest office leases in Alabama in decades. The Southern Company Services, set to take occupancy in 2019, has made several key improvements to the property and plans more investments in the coming years.

“The property is undergoing extensive renovation and improvement by the tenant which will transform the property into a state-of-art corporate campus,” Ponticello says. “This was a non-functioning property for years and Southern Company's relocation to the property was a huge win for the city of Birmingham, its economy, and the current owners.”