Colonial agreed to invest $50 million for a 15% ownership interest. The CRT portfolio encompasses 137 buildings in 26 developments in 12 metropolitan areas in Texas, Maryland and the Southeastern states. It contains an aggregate of 11.7 million sf and was approximately 84% leased at the end of June. The price tag represents approximately $153.85 per sf, and the sale includes the assumption of $369 million in mortgage debt.
Colonial and DRA have previously partnered in a multifamily JV, and this is the partnership's first office property collaboration. Colonial will assume managing and leasing of the portfolio. In a statement, Carter Langston, VP of Colonial's corporate communications, says the company expects to retain the CRT management and leasing personnel.
Under the agreement, the buyer is paying $27.80 a share for CRT common stock. At the time the agreement was struck, that represented a better-than-15% premium of shares, which traded on the NYSE under the letters CRO. At midday Monday Sept. 16, just prior to the closing, CRO share were trading in the range between $28.07 and $28.10 a share.
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