High-Barrier Primary Market Strategy Takes Center Stage with Latest
Midtown Manhattan Acquisition
ATLANTA--(BUSINESS WIRE)--
Columbia Property Trust, Inc. (NYSE:CXP) announced it has signed a
definitive agreement to acquire the commercial condominium unit in the
historic New York Times Building, a 16-story, 481,110-square-foot
Class-A office building located at 229 West 43rd Street in
the Times Square submarket of Manhattan, from affiliates of Blackstone
Real Estate Partners VI L.P. for $516 million. The acquisition is
expected to close within 30 days subject to customary closing conditions.
The acquisition is expected to be funded with a $300 million six-month
bridge loan and short-term borrowings under Columbia’s $500 million
unsecured credit facility, which is expected to increase the company’s
leverage to approximately 39% of gross real estate assets (as of June
30, 2015, adjusted for recent dispositions). Currently 98% leased, the
commercial unit of 229 West 43rd Street is expected to have
first-year in-place net operating income (NOI) of approximately $22.3
million. The acquisition will bring Columbia’s portfolio to
approximately 69% CBD and 79% multi-tenant and its exposure to
high-barrier markets to 52%, all based on annualized lease revenue.
“The addition of 229 West 43rd Street to our other Manhattan
properties will mirror what we have successfully achieved across our
portfolio as a whole and in San Francisco in particular – blending a
number of value-add opportunities with more stable assets in
high-barrier primary markets,” said Nelson Mills, President and CEO of
Columbia Property Trust. “Acquiring this iconic property with such
strong tenancy and below-market rents at attractive pricing compared
with other New York transactions enables us to increase exposure in what
will be our second largest market, while spreading out lease maturities
and capital commitments.”
Built and assembled in multiple phases from 1912 through 1947, the
former home of The New York Times has undergone a recent
redevelopment program that totaled $167 million, including a full
upgrade of the building’s infrastructure, amenities and aesthetics. The
property, which is not encumbered by a ground lease, consists of a
condominium interest that spans a portion of the first and fourth floors
and all of floors five through sixteen. The lower three and a half
floors are owned by a separate entity. Major tenants at the property
include Yahoo!, Snapchat, Collective Inc., and MongoDB.
About Columbia Property Trust
Columbia Property Trust is a fully integrated real estate investment
trust that operates, manages, and acquires Class-A office buildings
concentrated in CBD locations, with approximately half of its portfolio,
as measured by annualized lease revenue, located in high-barrier primary
markets. As of July 1, 2015, Columbia owned 27 office properties and one
hotel, which included 40 buildings totaling 13.4 million square feet of
office space. For more information about Columbia Property Trust, please
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 the expected funding
of the transaction, our expected leverage following the transaction,
expected NOI for the building, and 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150724005050/en/
For Columbia Property Trust, Inc.
Tripp Sullivan, 615-760-1104
or
Jim
Fleming, 404-465-2200
IR@columbiapropertytrust.com
Source: Columbia Property Trust, Inc.