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Columbia Property Trust Announces the Sale of 11 Properties for $433 Million

July 01, 2015 12:00 AM


  • Single portfolio transaction completes majority of Columbia’s anticipated property disposition activity for 2015
  • Transforms the remaining portfolio to 77% multi-tenant and 81% CBD/urban infill, with nearly 50% of ALR derived from high-barrier markets
  • Reduces leverage to 32.7% on a pro forma basis, resulting in $490 million capacity available on its $500 million credit facility

ATLANTA--(BUSINESS WIRE)-- Columbia Property Trust, Inc. (NYSE:CXP) announced today the sale of 11 suburban and principally single-tenant office properties totaling 2.9 million square feet for total gross proceeds of $433.3 million to an unnamed real estate private equity fund.

The proceeds from this sale will be used to reduce outstanding borrowings. The Company will repay amounts outstanding on its revolving credit facility, which was recently used to pay off a $206.5 million loan secured by 333 Market in San Francisco, and pay off a $21.0 million mortgage loan on one of the disposition properties. Proceeds from this sale will also be used to pay off a $105.0 million loan secured by 100 East Pratt in Baltimore, Maryland. Proceeds from 10 of the properties are available immediately, and the remaining proceeds are expected to be available approximately 30 days later. The transaction is expected to result in a net gain of approximately $17 million that will be recognized in the Company’s third quarter 2015 results.

The Company continues to market the three remaining properties it previously identified as expected dispositions: 1881 Campus Commons in Reston, Virginia is projected to be completed later in the third quarter of 2015; 800 N Fredrick Avenue in suburban Maryland is projected to be completed by the end of the year; and 263 Shuman Boulevard in suburban Chicago is expected to be completed in 2016.

“We had significant interest in these properties from both single-asset and portfolio buyers,” said Nelson Mills, President and CEO of Columbia Property Trust. “The pricing for the first 11 properties is in line with our expectations, and we are confident that, with the sale of the three remaining properties, total proceeds will be within our expected range of $500 million to $600 million.

“As we’ve noted for some time, these suburban and single-tenant assets were not part of our long-term strategy. The dispositions were a key step in the dramatic shift of our portfolio toward multi-tenant properties in CBD locations with a meaningful presence in high-barrier markets. While we may dispose of other assets in the future to fund compelling uses of capital, these 14 properties are the last of those we identified as ‘must-sell’ in connection with our strategy. Post-disposition, we believe Columbia is in exclusive company with other high-barrier peers and is well-positioned to grow the value of our portfolio.”

Property Details

        Property Name         Market       ST
1       Acxiom         Chicago       IL
2       The Corridors III         Chicago       IL
3       Highland Landmark III         Chicago       IL
4       215 Diehl Road         Chicago       IL
5       Bannockburn Lake III         Chicago       IL
6       544 Lakeview         Chicago       IL
7       550 King Street Buildings         Boston       MA
8       Robbins Road         Boston       MA
9       1580 West Nursery Road         Baltimore       MD
10       170 Park Avenue         N. New Jersey       NJ
11       180 Park Avenue         N. New Jersey       NJ

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, 2015, Columbia Property Trust’s portfolio consisted of 38 office properties and one hotel, which included 55 operational buildings and comprised approximately 16.6 million square feet located in 15 U.S. metropolitan statistical areas (MSAs). For information about Columbia Property Trust, visit

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, 2014, 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.

for Columbia Property Trust, Inc.
Tripp Sullivan, 615-760-1104
Jim Fleming, 404-465-2200

Source: Columbia Property Trust, Inc.

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