ATLANTA--(BUSINESS WIRE)--
Columbia Property Trust, Inc. (NYSE:CXP) announced that it has acquired
221 Main Street, a 16-story, 387,943-square-foot, LEED®
Platinum Class-A office tower in San Francisco, California, for a total
purchase price of $228.8 million.
The purchase price includes the Company’s assumption of a $73.0 million
interest-only loan secured by the property that matures in May 2017 and
bears interest at 3.95%. The $155.8 million cash portion of the purchase
price was funded from the Company’s $500 million unsecured credit
facility and cash on hand. The acquisition is expected to increase
Columbia’s leverage (based on debt to gross real estate assets) from
29.3% at the end of the first quarter to approximately 31.5%.
Located in the Spear Street corridor of downtown San Francisco’s South
Financial District, 221 Main Street is currently 81% occupied and is
expected to have first-year in-place net operating income (NOI) of
approximately $7 million. With excellent Bay Bridge and Embarcadero
views and proximity to the Transbay Transit Center project, 221 Main
Street offers large, highly-efficient floor plates and attractive
on-site amenities.
“San Francisco is an important market for us, and over the last two
years we have worked to carefully identify acquisitions that could meet
our stringent underwriting criteria,” said Nelson Mills, President, CEO
and Director of Columbia Property Trust. “221 Main Street offers a
compelling opportunity to expand in one of the better performing
submarkets in the country, at a substantial discount to replacement
cost. With current vacancy and nearly one-third of the space rolling
over before 2017 at in-place rents significantly below market, utilizing
our leasing expertise should allow us to substantially increase the NOI
from this property over the next three years.
“Our 2014 objectives call for adding a growth layer of value-add and
core-plus acquisitions in select primary markets to what we believe is
one of the stronger office portfolios in the country. The acquisition of
221 Main Street meets these objectives and plays to our strengths by
increasing an existing presence in San Francisco, providing an
opportunity to leverage demonstrated leasing capabilities, and further
concentrating the overall portfolio in CBD markets and multi-tenant
office buildings. As expected, the flexibility on our balance sheet
enabled us to move quickly, accommodate the loan assumption, and still
remain at one of the lowest leverage profiles in our sector.”
About Columbia Property Trust
One of the nation’s largest office REITs, Columbia Property Trust
invests in high-quality commercial office properties in primary markets
nationwide and has achieved an investment-grade rating from both Moody's
and Standard & Poor’s rating services. Columbia Property Trust's
portfolio includes 44 properties, consisting of 60 operational buildings
and comprising approximately 17.2 million square feet, located in 13
states and the District of Columbia. For information about Columbia
Property Trust, visit www.ColumbiaPropertyTrust.com.
Forward-Looking Statements:
Certain statements contained in this press release other than
historical facts may be considered forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. We intend for all such
forward-looking statements to be covered by the applicable safe harbor
provisions for forward-looking statements contained in those acts. Such
statements include, in particular, statements about our plans,
strategies, guidance, and prospects and are subject to certain risks and
uncertainties, including known and unknown risks, which could cause
actual results to differ materially from those projected or anticipated.
Therefore, such statements are not intended to be a guarantee of our
performance in future periods. Such forward-looking statements can
generally be identified by our use of forward-looking terminology such
as "may," "will," "expect," "intend," "anticipate," "estimate,"
"believe," "continue," or other similar words. Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. We make no representations or
warranties (express or implied) about the accuracy of any such
forward-looking statements contained in this press release, and we do
not intend to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise.
Any such forward-looking statements are subject to risks,
uncertainties, and other factors and are based on a number of
assumptions involving judgments with respect to, among other things,
future economic, competitive, and market conditions, all of which are
difficult or impossible to predict accurately. To the extent that our
assumptions differ from actual conditions, our ability to accurately
anticipate results expressed in such forward-looking statements,
including our ability to generate positive cash flow from operations,
make distributions to stockholders, and maintain the value of our real
estate properties, may be significantly hindered. See Item 1A in the
Company's most recently filed Annual Report on Form 10-K for the year
ended December 31, 2013 for a discussion of some of the risks and
uncertainties that could cause actual results to differ materially from
those presented in our forward-looking statements. The risk factors
described in our Annual Report are not the only ones we face, but do
represent those risks and uncertainties that we believe are material to
us. Additional risks and uncertainties not currently known to us or that
we currently deem immaterial may also harm our business.
Columbia Property Trust, Inc.
James A. Fleming, 404-465-2126
EVP
– Chief Financial Officer
or
Corporate Communications, Inc.
Tripp
Sullivan, 615-324-7335
tripp.sullivan@cci-ir.com
Source: Columbia Property Trust, Inc.