Hines, the international real estate firm, and Cousins Properties (NYSE: CUZ), the Atlanta-based REIT, announced today that they have formed a joint venture to develop 10000 Avalon, a 251,000-square-foot Class A office building in Atlanta. Cousins will have a 90 percent ownership interest and Hines will have a 10 percent ownership interest in the joint venture. The joint venture has secured AXIS Reinsurance Co., a subsidiary of AXIS Capital Holdings Limited (NYSE: AXS), as an anchor tenant with a 15-year, 76,000-square-foot lease.
10000 Avalon will be the second and final office building in Avalon, a leading mixed-use development in North Atlanta. The new building will be adjacent to Hines and Cousins’ successful 8000 Avalon office development that was delivered in June 2017 and is currently 98 percent leased. Construction on 10000 Avalon commenced earlier this month and initial occupancy is expected in 2020. Total development cost is anticipated to be approximately $97 million.
“We are thrilled that AXIS has chosen to anchor our second office development with Cousins at Avalon,” said John Heagy, Senior Managing Director of Hines. “AXIS is a great organization – a leading global player in specialty (re)insurance and an active and committed corporate citizen within the local community.”
“Cousins is looking forward to building on the success of our first Avalon office development with Hines as our partner,” said Larry Gellerstedt, Chairman and Chief Executive Officer of Cousins. “We are excited that AXIS has recognized Avalon as a compelling office location and are encouraged by the level of activity we are seeing from additional potential customers eager to join this vibrant mixed-use project.”
AXIS was represented in the lease negotiations by Sam Holmes of CBRE.
About Cousins Properties
Cousins Properties is a fully integrated, self-administered and self-managed real estate investment trust (REIT). The Company, based in Atlanta, GA and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office towers located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets and opportunistic investments. For more information, please visit www.cousins.com.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 201 cities in 24 countries. Hines has approximately $111 billion of assets under management, including $60 billion for which Hines provides fiduciary investment management services, and $51 billion for which Hines provides third-party property-level services. The firm has 108 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,295 properties, totaling over 422 million square feet. The firm’s current property and asset management portfolio includes 506 properties, representing over 210 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.
About AXIS Capital
AXIS Capital is a global provider of specialty lines insurance and treaty reinsurance with total shareholders' equity at March 31, 2018, of $5.3 billion and locations in Bermuda, the United States, Europe, Singapore, Middle East, Canada, and Latin America. Its operating subsidiaries have been assigned a rating of "A+" ("Strong") by Standard & Poor's and "A+" ("Superior") by A.M. Best. For more information about AXIS Capital, visit our website at www.axiscapital.com. Follow AXIS Capital on LinkedIn and Twitter.