X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BIRMINGHAM, AL-Diversified REIT Colonial Properties Trust, based here, has sold off majority interests in two Alabama shopping centers. Proceeds from the complex transactions will be used to pare down debt on the company’s revolving credit line.

“The company has generated over $135 million through asset dispositions this year, with the closing of these transactions,” says Thomas H. Lowder, chairman and chief executive officer of Colonial Properties Trust. “As a diversified property portfolio, our company maintains the flexibility to recycle assets and reinvest the proceeds into new opportunities in other sectors.” Colonial officials would not reveal financial details of the two recent transactions to GlobeSt.com.

Colonial has sold half of its 50% interest in Colonial Promenade Madison, a 111,000-sf center located near Huntsville, AL, to Columbus, OH-based Nationwide Mutual Insurance Co. In a simultaneous transaction, Winchester Commons LLC, Colonial’s partner, sold half of its 50% interest in the property to Nationwide. The result of the two concurrent deals leaves Nationwide with a 50% stake in the property while Colonial and Winchester retain 25% each.

Located at 7830 Highway 72 West in the Huntsville suburb of Madison, the two-year-old center is roughly 97% occupied with tenants paying rents in the mid-teens per sf. Colonial will continue its leasing and management arrangement under the new ownership structure. The center is anchored by Publix, Books-A-Million and Staples.

In a separate transaction, Colonial sold 90% of its stake in the155,000-sf Colonial Promenade Hoover to the Highway 150 LLC joint venture, a partnership between Colonial and a group of private investors. Colonial will retain a 10% interest in the suburban Birmingham property.

Completed this year, the 99%-occupied center is located at 2720-2810 John Hawkins Parkway in Hoover. Rents in the area are upwards of $20 per sf.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.