"I believe there are many other property types, geographic areas, and sub-segment opportunities in the commercial real estate sector that are still at varying stages in the cycle," said Florance. "The opportunity to know what properties are in each of those segmentations and cycles is why our customers use CoStar."
John Benziger, Senior Vice President of Lincoln Property Company, represented CoStar in the acquisition of 1331 L Street, NW. William M. (Bill) Collins, Executive Managing Director, Paul J. Collins, Executive Managing Director, John A. (Drew) Flood, Senior Managing Director, W. Judson Ryan, Senior Vice President, and James P. Cassidy, Senior Vice President of Cassidy Turley Commercial Real Estate Services, represented CoStar in the building sale. In an interesting aside, the idea for starting CoStar arose during a lunch Florance had with John Benziger and Bill Collins 25 years ago.
The building sale and leaseback agreements do not affect the Company's fourth quarter of 2010 or full year of 2010 results. The sale-leaseback will likely be accounted for as an operating lease and will result in additional rent expense in 2011. The 2011 expense impact is expected to be approximately $4.5 million to $5.0 million, which the Company will discuss in greater detail on its upcoming earnings conference call scheduled for February 24, 2011 at 11 AM EST.
About CoStar Group, Inc.CoStar Group (Nasdaq:CSGP) is commercial real estate's leading provider of information, analytic and marketing services. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe with a staff of approximately 1,500 worldwide, including the industry's largest professional research organization. For more information, visit www.costar.com . About GLL Real Estate Partners GLL Real Estate Partners GmbH (GLL) is a Munich-based real estate funds management group. GLL was formed in 2000 by three senior executives of HypoVereinsbank, then Germany's largest real estate bank, in a joint venture with Italian insurance giant Assicurazioni Generali. GLL's funds under management now exceed EUR4 billion with investments across Western Europe, Central Eastern Europe and the United States. Investors with the Group include pension funds, insurance companies and sovereign entities. GLL's demonstrable investment track record combined with the extensive network of Generali and GLL's own distinguished Advisory Board, provides a unique deal sourcing capability which has enabled GLL to build a balanced portfolio of institutional grade assets. For more information, visit www.gll-partners.com . This news release includes "forward-looking statements" including, without limitation, statements regarding CoStar's expectations, beliefs, intentions or strategies regarding the future. These statements are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. More information about potential factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, those stated in CoStar's filings from time to time with the Securities and Exchange Commission, including CoStar's Form 10-K for the year ended December 31, 2009, and CoStar's Form 10-Q for the quarter ended September 30, 2010, under the heading "Risk Factors." In addition to these statements, there can be no assurance that the sale of the building will close by the date expected or at all, that the lease agreement with CoStar for space at 1331 L Street, NW will be entered into at closing of the sale, that the yield spread of GLL's investment will remain more attractive than U.S. Treasuries, that GLL will benefit from its long-term investment, that the building will remain a valuable, fully leased long-term asset for the new owners, that CoStar will remain eligible for the tax abatement or that it will become or remain eligible for any other incentives identified in this release or otherwise, that CoStar will create 700 jobs at its D.C. headquarters location, that in every major U.S. market there are dozens of distressed, high quality buildings and dozens of large, creditworthy tenants, presenting opportunities to create similar arbitrage value-creation plays or that others would be able to benefit from similar situations by leveraging CoStar data, that there are many other property types, geographic areas, and sub-segment opportunities in the commercial real estate sector that are still at varying stages in the cycle, that the sale-leaseback discussed in this release will be accounted for as an operating lease and will result in additional rent expense for CoStar in 2011, and that the 2011 expense impact for CoStar will be as set forth in this release. All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update such statements.
CONTACT: ANALYSTS / INVESTORS: Brian J. Radecki Chief Financial Officer (202) 336-6920 email@example.com MEDIA: Chris Macke Senior Real Estate Strategist 877.739.5192 firstname.lastname@example.org