Continues Build out of Regional Investment Platform in San Francisco
ATLANTA--(BUSINESS WIRE)--
Columbia Property Trust, Inc. (NYSE:CXP) announced that it has completed
the acquisition of 650 California Street, a 33-story,
478,392-square-feet Class-A office tower in San Francisco, California,
from Tishman Speyer and Prudential Real Estate Investors for a total
purchase price of $309 million.
The purchase price includes the Company’s assumption of a $130 million
loan bearing interest at 3.60% and maturing July 2019. The $179 million
cash portion of the purchase price was funded with a combination of
borrowings under our 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 31% at the end of the second quarter
to approximately 32%. Currently 88% leased, 650 California Street is
expected to have first-year in-place net operating income (NOI) of
approximately $11 million.
With its desirable location in the Financial District of downtown San
Francisco and protected panoramic bay views, 650 California Street has
demonstrated perennial tenant appeal. The LEED Gold-certified property
underwent a $14.2 million renovation over the past two years that
included the addition of an onsite parking garage and a comprehensive
lobby renovation, to accompany the building’s large, highly-efficient
floor plates and amenities such as fitness and conference centers and
bicycle parking.
Asset management and leasing of the property will be overseen by
Columbia’s Western Region team, which is led by David Dowdney, Senior
Vice President – Western Region. To support its growing presence in the
region, the Company recently expanded its San Francisco-based team with
the addition of Michael Schmidt, who brings over 13 years of portfolio
and asset management experience in major West Coast markets and will
have oversight of this and Columbia’s other West Coast assets.
“We have established a significant presence in downtown San Francisco —
a market that continues to be one of the best in the U.S., and we
continue to achieve strong leasing results at our nearby asset, 221 Main
Street,” said Nelson Mills, President and CEO of Columbia Property
Trust. “650 California Street is a compelling opportunity to acquire one
of the premier assets in this market at a discount to replacement cost.
With more than half the current tenancy rolling in the next three years
and in-place rents significantly below current market levels, we expect
to employ the expertise of our expanded local team to increase net
operating income at this property over the next three years.
“Given the extensive experience that Dave and Mike add and their track
record of successful deal sourcing and asset repositioning, I am
confident we have the right team in place to lead our efforts on this
asset and our continued strategic enhancement of our portfolio.”
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. As of June 30, 2014, Columbia
Property Trust’s portfolio consisted of 37 office properties and one
hotel, which included 58 operational buildings and comprised
approximately 16.8 million square feet located in 12 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, 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.
Krister Romeyn, 404-465-2231
or
Jim
Fleming, 404-465-2200
IR@columbiapropertytrust.com
Source: Columbia Property Trust, Inc.