Frost Bank Tower under Contract for $188 Million
August 03 2006 - 9:00AM
Business Wire
Cousins Properties Incorporated (NYSE: CUZ) announced today it has
agreed to sell Frost Bank Tower, a 33-story, 531,000-square-foot
office building in downtown Austin, Texas, to Chicago-based Equity
Office (NYSE: EOP) for $188 million or approximately $354 per
square foot. The transaction is in due diligence until August 22
and the sale is expected to close in mid-September. The closing is
subject to normal contingencies and is conditioned upon the
successful closing of Cousins' pending purchase of One Ninety One
Peachtree Tower, a 50-story, 1.2 million-square-foot office
building in downtown Atlanta, from Equity Office. Cousins will
retain property management of Frost Bank Tower. "Frost Bank Tower
is a remarkable success story for our company," said Tom Bell,
president and CEO of Cousins. "We faced tremendous challenges: At
the time we started, it was the tallest U.S. skyscraper to start
construction after 9/11 and the largest office tower in Austin's
history." "It's a great testament to our Austin team that they were
able to successfully deliver this building during a very difficult
office market, not only delivering a shining jewel for Austin's
skyline but also creating tremendous value for Cousins'
shareholders and developing the most valuable office building in
Texas history," Bell added. "With this sale, our office and retail
teams in Austin can continue pursuing the excellent development
opportunities here. We hope to have more announcements about those
in the coming months." "In my 30 years in Austin, I have never been
involved in a more challenging or rewarding project than Frost Bank
Tower. This building's success is the product of a committed team
combined with outstanding community support and the best customers
any building could ask for," said Tim Hendricks, senior vice
president for office development in Texas. "Even with the sale,
Cousins is still strongly committed to Austin and our team is
focused on a number of new development opportunities." The CB
Richard Ellis team of Russell Ingrum, Todd Mills, Bart Matheney,
Volney Campbell and John Shlesinger represented Cousins in the
transaction. Delivered in January 2004, Frost Bank Tower is home to
many of Austin's top businesses including Frost Bank, Jenkens &
Gilchrist PC, Graves Dougherty Hearon and Moody PC, Winstead
Sechrest & Minick PC, Heritage Title Co. of Austin and The
University of Texas Investment Management Company. The building is
82 percent leased. The pending Frost Bank Tower sale is Cousins'
second large office building sale agreement in as many months. In
July, Cousins and partner Bank of America entered into a contract
to sell Bank of America Plaza in Atlanta for $436 million or
approximately $348 per square foot. This price is both a
single-office-building and per-square-foot price record for the
state of Georgia. Cousins Properties Incorporated, headquartered in
Atlanta, has extensive experience in the real estate industry
including the development, acquisition, financing, management and
leasing of properties. The property types that Cousins actively
invests in include office, multi-family, retail, industrial and
land development projects. The Company's portfolio consists of
interests in 7.4 million square feet of office space, 3.8 million
square feet of retail space, 1.3 million square feet of industrial
space, one multi-family residential project and 23 single-family
neighborhood developments, over 9,200 acres of strategically
located land tracts for sale or future development, and significant
land holdings for development of single-family residential
communities. Cousins also provides leasing and management services
to third-party investors; its client-services portfolio comprises
13 million square feet of office and retail space. Cousins is a
fully integrated equity real estate investment trust (REIT) that
has been public since 1962 and trades on the New York Stock
Exchange under the symbol "CUZ." For more information on the
Company, please visit Cousins' Web site at
www.cousinsproperties.com. Certain matters discussed in this news
release are forward-looking statements within the meaning of the
federal securities laws and are subject to uncertainties and risks,
including, but not limited to, general and local economic
conditions, local real estate conditions, the activity of others
developing competitive projects, the cyclical nature of the real
estate industry, the financial condition of existing tenants,
interest rates, the Company's ability to obtain favorable financing
or zoning, environmental matters, the effects of terrorism, the
failure of assets under contract for sale to ultimately close and
other risks detailed from time to time in the Company's filings
with the Securities and Exchange Commission, including the
Company's Report on Form 10-K for the year ended December 31, 2005.
The words "believes," "expects," "anticipates," "estimates" and
similar expressions are intended to identify forward-looking
statements. Although the Company believes that its plans,
intentions and expectations reflected in any forward-looking
statement are reasonable, the Company can give no assurance that
these plans, intentions or expectations will be achieved. Such
forward-looking statements are based on current expectations and
speak as of the date of such statements. The Company undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of future events, new information or
otherwise.
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