ATLANTA (July 15, 2010) - Cousins Properties might have been outbid in the Chase for Campanile, but it's likely not out of the deal.
While the Atlanta REIT isn't expected to buy the 20-story tower at Midtown's highest-profile corner (Peachtree & 14th), Cousins could play a role in helping the winning bidder finance the deal. For Cousins, involvement on the financing side practically would guarantee it leasing and management fees. And those types of fees help REITs meet critical FFO (funds from operations) numbers.
For its part, Cousins declined to comment about whether it bid for or is helping finance the deal for Campanile, at left. WNS took this photo July 18.
As for the favorite among bidders, the buzz this week is that Atlanta's own Brookdale Group could emerge as the new owner of the former BellSouth headquarters building. (Campanile is an Italian term that means "bell tower.") Brookdale could use its current fund, Brookdale Investors Six LP, which plans to invest $850 million in Class A office building, to pick up Campanile. The Buckhead firm might even have a tenant (think law firm with the initials MMM).
Word on pricing is that the winning group will pay $70 to $75 a foot, well below the $200 a foot replacement cost. So even at 15 percent occupancy, the building is a great deal.
During this slow summer, the Chase for Campanile is the hottest story going.
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