PRS, Related Capital Buy 106-Year-Old, 576,000-SF Former Mill

The first lofts will be available for lease by spring 2003 at monthly rents of $425 to $920 for 1,000 sf to 1,500 sf of living area under 18-foot ceilings, the companies say in a prepared statement.

PRS bought the 106-year-old, 576,000-sf property from Johnston Industries Inc. of Columbus, GA for under $4 million or about $6.95 per sf, area brokers familiar with the listing tell GlobeSt.com on condition of anonymity. PRS and Related wouldn't disclose the purchase price to GlobeSt.com.

The deal was completed after Charter Mac, a Related company, provided $16.5 million to PRS for hard construction costs. Charter obtained the funds by purchasing $16 million in tax-exempt bonds and $500,000 in taxable bonds.

"The development marks a growing trend of the conversion of historic textile mills, of which there is a preponderance in the southern U.S., into creative alternative uses," PRS president William B. Creekmore says in a prepared statement.

The Johnston Mill Lofts project is expected to spark a growing urbanism movement and rejuvenation in the Riverwalk area of Columbus, Creekmore says. Dan Muccio, president of PRS' management arm, is overseeing the project. The exterior of the 1896-constructed building will be untouched except for the replacement of the federal-style windows.

In the same statement, Stuart Boesky, senior managing director, Related Capital Co. and president, Charter Mac, calls the venture "an outstanding investment" for his companies.