AI CC area text handles

I am trying to work with area text in Illustrator CC 2014. I used to be able to grab and pull the handles to reformat my text. The text block will not allow me to do this. I have to select and nudge points. All of the tutorials I have watched seem to have the text box handles/points and allow the ability to pull them. What's up in AI?

jmosemak,
What happens if you select the rectangle before applying the Area Type, then Pathfinder>Unite, and then apply the Area Type, and see?

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