This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

CoStar Enters Contract To Sell Washington, DC Headquarters Building For Total Consideration Of $101 Million One Year After Acquiring Building For $41 Million

"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
          bradecki@costar.com
         
          MEDIA:
          Chris Macke
          Senior Real Estate Strategist
          877.739.5192
          cmacke@costar.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,474.94 +75.27 0.46%
S&P 500 1,921.53 +17.52 0.92%
NASDAQ 4,365.7630 +49.6890 1.15%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs