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WASHINGTON, Feb. 22, 2011 (GLOBE NEWSWIRE) -- CoStar Group, Inc. (Nasdaq:CSGP), commercial real estate's leading provider of information, analytic and marketing services, finalized the
previously announced sale of its headquarters building at 1331 L Street, N.W. in Washington, D.C., to GLL L-Street 1331, LLC, an affiliate of Munich-based GLL Real Estate Partners GmbH, for aggregate consideration of $101 million in cash. The transaction closed on Friday, February 18, 2011. CoStar Group's headquarters will remain at the LEED-certified, 169,429-square-foot building under a long-term lease signed with the new owner.
"We are very pleased with the sizable gain realized from the building sale, which provides a tremendous return on our initial investment," said Andrew Florance, Founder and CEO of CoStar Group. "We are also pleased to have secured a long-term lease agreement with GLL as the new owner of this trophy building. Having our headquarters in such a highly desirable downtown location within an efficient and environmentally responsible building is a great benefit for our employees and a great advantage for our Company. In addition to being able to accommodate our growth well into the future, it also enhances our ability to recruit and retain top talent here in the Nation's Capital."
Under the sale agreement, $15 million of the consideration is being held in escrow for the purpose of funding additional build-out and planned improvements for CoStar's space and for the common areas of the building. The Company expects its long-term lease-back agreement at the building 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.
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
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 €4 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
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 new headquarters building will accommodate the Company's growth well into the future or enhance its ability to recruit and retain top talent, that the long-term lease-back agreement at the building will be accounted for as an operating lease, or that the rent expense will be as stated 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
Senior Real Estate Strategist