Business News 3344 Peachtree 1

Published on April 29th, 2016 |

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Cousins buying Parkway Properties, expanding Buckhead portfolio

Cousins Properties Inc. is abandoning the weakened Houston office market and focusing on its roots in Atlanta and the Southeast by purchasing Parkway Properties Inc. in a $2 billion-plus deal

3343 Peachtree is the office tower part of the tallest building in Buckhead, which includes the Sovereign condos.

3343 Peachtree is the office tower part of the tallest building in Buckhead, which includes the Sovereign condos.

that is expected to close in the fourth quarter, according to an Atlanta Business Chronicle report.

The deal announced Friday morning will deepen Cousins’ presence in Atlanta, Austin and Charlotte and give it a strong presence in Phoenix, Orlando and Tampa, according to the ABC. The Cousins portfolio will expand to 41 properties comprising 15.8 million square feet. Cousins will remain headquartered in Atlanta and will continue to be led by President and CEO Larry Gellerstedt and the company’s existing senior management team, the ABC reports.

As part of the deal, Cousins gets out of the Houston market, which has been weakened by reductions in oil business. Cousins and Parkway will spin off their Houston properties into a publicly traded REIT called HoustonCo., the ABC reports.

Almost half of Cousins’ office portfolio will now be in Atlanta, including Buckhead trophy towers such as 3344 Peachtree, 3348 Peachtree, One Capital City Plaza and One Buckhead Plaza at a time when office market rents are hitting all-time highs, with little new development.

The deal will also expand Cousins’ office holdings into Orlando and Tampa, Fla., Phoenix, Ariz. and Charlotte, N.C.

To read the entire Atlanta Business Chronicle story, click here.

 

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