Under Contract to Purchase 149 Madison Avenue with Plans to Fully
Reposition Building as Modern Boutique Office
ATLANTA & NEW YORK--(BUSINESS WIRE)--
Columbia
Property Trust, Inc. (NYSE: CXP) has reached an agreement to
purchase 149 Madison Avenue, a 127,000-square-foot office building in
Manhattan, from a private family owner. Price was not disclosed. The
transaction is expected to close later this year.
149 Madison is located in the heart of the NoMAD district of Midtown
South on the southeast corner of 32nd Street and Madison
Avenue. Built in 1916, the 12-story building is subject to a ground
lease that expires in January 2018 with fully coterminous tenant leases.
At expiration, Columbia will own a fee simple interest in the land and
building. Columbia plans to invest significant capital to perform a
comprehensive renovation of the property, including updating and
upgrading its infrastructure, interior and exterior finishes, and common
areas throughout.
“149 Madison offers a compelling opportunity to leverage our scale and
expertise in New York at an attractive discount to replacement cost and
to create value through repositioning and re-leasing the full building,”
said Nelson
Mills, president and CEO of Columbia Property Trust. “With over $600
million in proceeds available from our recently completed disposition
program, the purchase of 149 Madison is a promising start to our plan to
put capital to work in our target markets.”
Adam
Popper, senior vice president for Columbia in the Eastern region,
continued, “The expiration of both the ground lease and existing tenant
leases at 149 Madison offer us a rare opportunity to renovate the entire
building and mark to market rates on every floor, providing strong
upside potential. We have already begun preparations to reposition this
building over the next 18-24 months so that it will compete among the
best product in the submarket.”
When completed, the acquisition of 149 Madison Avenue will be Columbia’s
second asset in the Midtown South market and will provide the Company
with a portfolio of five office properties totaling two million rentable
square feet in the New York City area.
Eastdil Secured and Cushman & Wakefield represented the seller in the
transaction.
About Columbia Property Trust
Columbia Property Trust (NYSE: CXP) owns and operates Class-A office
buildings primarily in high-barrier-to-entry, primary markets. Our
portfolio includes 16 office properties containing eight million square
feet, concentrated in New York, San Francisco, and Washington, D.C.
Columbia carries an investment-grade rating from both Moody’s and
Standard & Poor’s. For more information, please visit www.columbia.reit.
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, anticipated dividends, 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, 2016, 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/20170309006316/en/
Columbia Property Trust, Inc.
Media Contact:
Bud
Perrone, 212-843-8068
[email protected]
or
Investor
Relations:
Matt Stover, 404-465-2227
[email protected]
Source: Columbia Property Trust, Inc.