CB Richard Ellis Investors has taken over the lead role in a $2 billion redevelopment of Atlanta’s midtown after buying multiple properties from the real estate group of troubled insurer AIG.
The Los Angeles-based firm said it had closed on the acquisition of the BB&T Tower in the city’s 138-acre Atlantic Station scheme. CBRE Investors also purchased a 534,000-square-foot retail centre, a 7,000-space parking garage and development land comprising 14.3 acres in the deal with AIG Global Real Estate. The transaction was valued at more than $165 million by data provider Real Capital Analytics. CBRE Investors closed the retail centre acquisition in a joint venture with developer North American Properties.
CBRE Investors declined to comment on financial details but confirmed the deal was made through the firm’s $2.1 billion CBRE Strategic Partners US Fund 5. Vance Maddocks, president of CBRE Strategic Partners US, said in a statement the firm was making a “significant investment” in the Atlantic Station scheme. CBRE Investors will now become the master developer of Atlantic Station, a redevelopment project that has seen the transformation of an abandoned industrial site into a commercial and residential district of Atlanta.
Prior to the AIG deal, CBRE Investors had acquired two multifamily properties at Atlantic Station for a reported $54 million. In November, the firm bought the Icon and Park District apartments, comprising 473 units, from developer Lane Co.
AIG Global Real Estate has been steadily selling its real estate portfolio in the wake of the credit crisis, which caused its parent to accept more than $180 billion in bailout funding. In November, the firm was poised to sell its private equity real estate group in Asia to Dallas-based Invesco Real Estate.