New CEO: Cousins on hunt for distressed properties

By Gertha Coffee

The Atlanta Journal-Constitution

Cousins Properties won’t be starting many developments in the next few years, but will remain focused on buying distressed real estate, president and CEO Larry Gellerstedt III said Tuesday in his first earnings conference call with analysts since becoming head of the Atlanta-based developer July 1.

While Cousins will look for distressed retail and residential properties, especially in Sunbelt states, Gellerstedt said office buildings in its core markets provide the best opportunities.

“What we are looking for are opportunities like 191 Peachtree and the American Cancer Society,” Gellerstedt said, citing buildings Cousins bought at bargain prices, renovated and filled with tenants. Cousins is now headquartered in the 191 building.

In the meantime, Cousins will continue aggressive efforts to maintain tenants and increase occupancy at properties it owns and manages.

Gellerstedt also said Cousins has not moved to liquidate any holdings in today’s battered commercial real estate market. While it may sell a few assets, now “is probably not the right time to do a lot of that,” he said.

The call came a day after Cousins, in second quarter results, posted a $81.3 million net loss, including a $34.9 million charge to write down the value of the 10 Terminus Place condo project in Buckhead and another $28.1 million in charges to write down investments in residential joint ventures.

The company also took a $2 million charge for the retirement of Tom Bell, its former CEO.

Second-quarter revenue climbed to $51.1 million from $46.7 million.