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Columbia Property Trust Completes Sale of 49% Interest in Market Square to Blackstone Property Partners

October 28, 2015 12:00 AM

ATLANTA--(BUSINESS WIRE)-- Columbia Property Trust, Inc. (NYSE: CXP) completed the previously announced sale of a 49% interest in Market Square in Washington, D.C. to Blackstone Property Partners US, Blackstone’s Core+ real estate investment unit. With a gross asset value of $595.0 million for Market Square, and after deducting the partner’s pro rata share of the $325.0 million indebtedness secured by Market Square, as well as an adjustment of $12.25 million for the partner’s pro rata share of above market debt, Columbia received $120.0 million in gross proceeds, which will be used to repay short-term debt. In addition to retaining a 51% interest in the property, Columbia will continue to provide property- and asset-management services to the joint venture, as well as oversee the day-to-day operations at the property.

“Blackstone is a fantastic partner and is fully supportive of our plans for Market Square as a pre-eminent office property in Washington, D.C.,” noted Nelson Mills, president and chief executive officer of Columbia Property Trust. “This transaction highlights the strong value achieved for Market Square and enables us to redeploy capital to improve our balance sheet.”

“This investment is a great example of our Core+ fund’s goal of acquiring trophy real estate with upside that we will hold for the long-term,” said Frank Cohen, Senior Managing Director and Global Head of Core+ for Blackstone. “We are excited to partner with such a well-respected group as Columbia.”

Market Square is a 687,000-square-foot trophy office property located at 701 and 801 Pennsylvania Avenue NW between the U.S. Capitol and the White House. The complex consists of twin 13-story buildings that curve inward to frame the U.S. Navy Memorial. Columbia is currently conducting a capital improvement plan at the property to renovate the lobbies, expand the fitness center and other facilities upgrades. Market Square is currently 80.0% leased and is encumbered by a $325.0 million mortgage loan bearing interest at 5.07% and maturing in February 2023.

About Columbia Property Trust

Columbia Property Trust (NYSE: CXP) owns and operates Class-A office buildings in competitive, primarily CBD locations, and over half our investments are in high-barrier-to-entry, primary markets. As of August 4, 2015, our $5+ billion portfolio included 28 office properties containing 13.9 million square feet and one hotel, concentrated in San Francisco, New York, and Washington, D.C. For more information about Columbia, which carries an investment-grade rating from both Moody’s and Standard & Poor’s, please visit

About Blackstone

Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has approximately $92 billion in investor capital under management. Blackstone’s real estate portfolio includes hotel, office, retail, industrial and residential properties in the US, Europe, Asia and Latin America. Major holdings include Hilton Worldwide, Invitation Homes (single family homes), Logicor (pan-European logistics), SCP (Chinese shopping malls), and prime office buildings in the world’s major cities. Blackstone real estate also operates one of the leading real estate finance platforms, including management of the publicly traded Blackstone Mortgage Trust.

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 (including the transactions announced today and execution of the stock repurchase program) 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.

Columbia Property Trust, Inc.
Tripp Sullivan, 615-760-1104
Jim Fleming, 404-465-2200
Peter Rose, 212-583-5871

Source: Columbia Property Trust, Inc.

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