CBRE Global Investors has acquired a trophy office tower in suburban Atlanta on behalf of its CBRE Strategic Partners US Value 6 fund, which closed on $1.1 billion in equity commitments last year. A statement from the Los Angeles-based real estate investment firm reveals that it purchased Three Ravinia Drive from Birmingham, Alabama-based REIT Colonial Properties Trust in an off-market transaction. Data provider Real Capital Analytics lists the price as $144.3 million.
Located in the Central Perimeter submarket, Three Ravinia represents the largest concentration of office space in the southeastern US. The 813,748-square-foot office property currently is 92 percent occupied by tenants that include Sims Moss Kline & Davis, Synerfac and Hill Financial Group. The 31-story building also features 8,600 square feet of street-level retail space.
“The Perimeter submarket experienced significant net office absorption in 2012 and is projected to have accelerated job growth in the near term,” said Vance Maddocks, president of CBRE Strategic Partners US.
As part of the strategy to address near-term lease expiration risk, the Strategic Partners team is planning a capital campaign to upgrade building systems and the amenities package to the standards of the fund’s signature 5-Star Worldwide service and amenity program. Additionally, the team will make select cosmetic improvements to common areas and recertify the existing LEED designation.
Through Fund VI, which exceeded its original target of $750 million, CBRE Global Investors’ investment team has total purchasing power of $2.7 billion to acquire, reposition and sell institutional-quality properties in major metropolitan areas across the US. In addition to Three Ravinia Drive, other assets acquired on behalf of the fund so far include the San Jose Marriott Hotel; Tollway Plaza I & II, two adjacent Class A office buildings in Dallas; 400 South Hope Street, a trophy office tower in downtown Los Angeles; an office property in Atlanta; and two multifamily assets each in Denver and Baltimore.