TVA buys back building for a bargain - WRCBtv.com | Chattanooga News, Weather & Sports

TVA buys back building for a bargain

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CHATTANOOGA, Tenn. (AP) - The Tennessee Valley Authority is set to take ownership of a southern Tennessee office complex for one-eighth as much as it sold the same buildings for 25 years ago.

The TVA is buying Chattanooga's biggest office complex on Monday for $22 million.

The Chattanooga Times Free Press reports that the agency sold the structures to a Chicago real-estate partnership in 1986 for $158 million.

Officials say the discounted price reflects the unique characteristics of the building, the terms of the previous lease and the depressed market for downtown offices.

TVA negotiated an agreement two years ago to buy back the Chattanooga office complex on Jan. 1, 2011, once its 25-year lease with Chicago-based Chattanooga Valley Associates expired.

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Information from: Chattanooga Times Free Press,

 

 

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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