MetLife Gives Koger $85M Loan on Three Ravinia Dr.

ATLANTA-A year after Koger Equity Inc. purchased the largest office property north of Midtown Atlanta and the tallest building in DeKalb County, the Boca Raton, FL-based REIT has obtained an $85 million, five-year-mortgage loan from Metropolitan Life Insurance Co. on Three Ravinia Dr. The loan carries a fixed interest rate of 5.26%.

Koger is using the funds to pay down a portion of the existing balance on its secured revolving credit facility. The REIT amended the facility to $100 million from $125 million.

Koger bought the 11-year-old, 31-story, 805,972-sf Three Ravinia Dr. in December 2001 from Atlanta-based Ravinia Three Associates Limited Partnership for $125 million cash or $155.09 per sf.

At that time, Koger officials told GlobeSt.com the cash would come from the proceeds of its recently closed $303 million portfolio sale to AP-Knight LP and from a $125 million line of credit issued by Boston-based Fleet National Bank. The credit line has a three-year term that expires Dec. 27, 2004.

The building lost a major tenant in September 2001 when MCI Corp. vacated 315,000 sf. At closing, Three Ravinia Dr. was 57% leased. Among the tenants are Bass Hotels and Resorts American, a subsidiary of Six Continents Plc; Blue Cross and Blue Shield of Georgia; and Alcan Cable.

The property is on the northeast corner of Ashford-Dunwood Road and Interstate 285 in Atlanta’s NW Central Perimeter submarket. Houston-based Hines Interests LP developed the building in 1991. Average quoted rents are $23 per sf to $27 per sf, Frank W. Herring, president of Jacksonville, FL-based St. Joe Commercial tells GlobeSt.com.

St. Joe bought the 13-year-old, 95%-leased 5660 New Northside Dr. building two weeks ago from the New York Central Pension Fund for $35 million or about $127 per sf. That property is along Interstate 285 between Interstate 75 and GA 400.