Transactions Demonstrate Continued Execution of Columbia’s Strategic
Move to a CBD and Multi-Tenant-Focused Portfolio
ATLANTA--(BUSINESS WIRE)--
Columbia Property Trust, Inc. (NYSE:CXP) announced that it has expanded
its holdings in Manhattan and entered Boston’s urban core through two
acquisitions totaling $588 million.
Columbia acquired a two-property portfolio from Spear Street Capital in
an off-market transaction for a total purchase price of approximately
$436 million, which most significantly included 315 Park Avenue South, a
newly-renovated, 341,330-square-foot, historic Class-A office building
in Manhattan’s Gramercy Park submarket. Additionally, the portfolio
included 1881 Campus Commons Drive, a 244,565-square-foot, Class-A
office building in the Washington, D.C., submarket of Reston, Virginia.
Separately, Columbia acquired the 274,218-square-foot, Class-A office
building at 116 Huntington Avenue in Boston’s Back Bay district from
Broadway Partners for a purchase price of $152 million, inclusive of
capital credits.
These acquisitions were funded with a $300 million bridge loan, a $140
million draw under Columbia’s unsecured credit facility, and $148
million of cash on hand, primarily generated by 2014 disposition
activity. These borrowings are expected to increase the company’s
leverage to approximately 37% of gross real estate assets. Columbia
expects to repay these borrowings with future disposition proceeds and
other financings.
First-year projected net operating income (NOI) is expected to be a
combined $17 million for 315 Park Avenue South and 1881 Campus Commons
Drive and approximately $5.5 million for 116 Huntington Avenue. Current
occupancy at 315 Park Avenue South is 95%, at 116 Huntington Avenue is
78%, and at 1881 Campus Commons Drive is 78%.
These acquisitions bring Columbia’s portfolio to approximately 59% CBD
and 71% multi-tenant, based on annualized lease revenue as reported in
the Company’s most recently filed supplemental financial information,
for the quarter ended September 30, 2014, adjusted for these
transactions.
“With these two significant transactions, we continue to execute our
strategy of improving the overall quality of Columbia’s portfolio
through investment in value creation opportunities in our target
markets,” said Nelson Mills, President and CEO of Columbia Property
Trust. “These acquisitions provide us with a greater presence in
Manhattan as well as a significant foothold in Boston’s urban core – two
of the nation’s most desirable markets. Each property offers favorable
upside potential, with in-place rents below market and significant lease
rollover in the next two to five years. We are confident that we can
once again achieve our targeted returns on these projects with our
demonstrated leasing capabilities.”
Built in 1910, 315 Park Avenue South combines historic architecture with
modern upgrades from significant capital investments made since 2007.
Set on a prominent corner at 24th Street, one block east of
Madison Square Park, the 20-story multi-tenant building features double
lobbies, efficient floor plates, and exterior advertising.
Located in the thriving Back Bay, Boston’s highest rent-achieving and
best-performing submarket, 116 Huntington Avenue is an Energy
Star-certified, 15-story office building constructed in 1991. The
property boasts a diversified tenant roster, efficient floor plates,
excellent transportation access, and unobstructed Back-Bay area views
from the upper half of the building.
The multi-tenant, transit-oriented five-story building at 1881 Campus
Commons was built in 1999 and significantly renovated over the past two
years. It is situated in Reston, Virginia, a suburb of Washington, D.C.,
immediately south of the Dulles Toll Road.
About Columbia Property Trust
Columbia Property Trust, a publicly traded REIT, 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 January 8, 2015, Columbia Property Trust's
portfolio consists of 38 office properties and one hotel, which included
55 operational buildings and comprised approximately 16.3 million square
feet, located in 15 U.S. metropolitan statistical areas (MSAs). 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.