PAC to Acquire Iconic Atlanta Office Tower
- Dec 09, 2016
Atlanta—Preferred Apartment Communities Operating Partnership LP, Preferred Apartment Communities Inc.’s (PAC) operating partnership, has committed to acquire Three Ravinia Drive, a Class A office building in the Central Perimeter submarket of Atlanta. The deal is pursuant to a signed Agreement of Purchase and Sale with SPUS6 Three Ravinia LP.
The company intends to fund the transaction with planned debt financing and a combination of borrowings under the company’s senior secured credit facility with KeyBank National Association, net proceeds from additional issuances, proceeds from anticipated disposition of certain assets as well as cash on hand. PAC has submitted its loan application and locked the interest rate with John Hancock. Hancock will provide a non-recourse first mortgage loan on the property at roughly 55 percent of the gross purchase price that remains undisclosed.
Located at 3 Ravinia Drive, the LEED Certified building encompasses 813,748 square feet and is 98 percent leased. Tenants include InterContinental Hotels Group and State Farm, with average remaining lease terms of approximately 10 years.
“Three Ravinia is a trophy asset, which we believe will be a very substantial contributor to PAC’s earnings,” John Williams, PAC’s chairman & CEO, said in prepared remarks. “Our primary focus remains on owning and operating multifamily communities, although, we will continue to consider on a limited basis compelling opportunities outside our core multifamily business, such as Three Ravinia, where we have significant management expertise,” added Leonard Silverstein, PAC’s president & COO.
According to Yardi Matrix data, the property traded for $145 million back in 2013. CBRE was the buyer, and Colonial Properties Trust the seller.
Image courtesy of Yardi Matrix