Colonial Properties Trust, a real estate investment trust (REIT) based in Birmingham, AL, announced this week that it had sold Colonial Pinnacle Turkey Creek in Knoxville, TN to an institutional pension fund advisor for $131.7 million according to a Knoxville News Sentinel article. Colonial had a 50% JV interest in the property with a group of local investors that were organized in entities called Turkey Creek Land Partners LLC and Farragut Land Partners LLC. "The disposition [...] is another step in the execution of our strategy to simplify the business and sell our non-core assets," stated Thomas H. Lowder, Chairman and Chief Executive Officer. A CoStar report notes that the REIT will use proceeds of the sale to repay a portion of outstanding balance on an unsecured line of credit, with the remainder used to acquire multifamily apartment communities across the South.
Colonial Pinnacle Turkey Creek is a 659,000 square foot retail center built in 2006 on more than 40 acres in the Campbell Station / Farragut submarket of Knox County, just three miles from the I-40/75 junction. The property includes Colonial Promenade and Pavilions and counts Belk, Best Buy, Panera, World Market, the Regal Pinnacle 18 cinema and H.H. Gregg as major tenants.
"The transaction highlights the continuing trend of institutional investors acquiring core assets in secondary markets with more compelling returns than those associated with major market core properties," said Chris Decoufle, one of two CBRE brokers who represented the seller on the Turkey Creek deal. "Both the seller and purchaser were highly pleased with the results."
For more news and information visit Blumberg Capital Partners.
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