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 www.columbiapropertytrust.com.
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151028006596/en/
Columbia Property Trust, Inc.
Tripp Sullivan, 615-760-1104
[email protected]
or
Jim
Fleming, 404-465-2200
or
Blackstone
Peter Rose,
212-583-5871
[email protected]
Source: Columbia Property Trust, Inc.