Columbia Property Trust, Inc. (the “Company”)(NYSE: CXP), one of the nation’s largest office REITs, today announced it has closed on the sale of 18 properties described below totaling approximately 4.0 million square feet in 12 markets, for gross proceeds of $521.5 million to entities of Griffin Capital Essential Asset REIT, a non-traded REIT sponsored by Griffin Capital Corporation.
The net proceeds of approximately $500 million will be used to pay down a $90 million mortgage loan on one of the properties and to reduce the Company’s outstanding borrowings on its revolving credit facility. The liquidity these proceeds provide, together with the its borrowing capacity under its revolving credit facility, is expected to fund the Company’s previously announced tender offer of Columbia’s common shares as well as future acquisitions. The 18 properties will be treated as discontinued operations on the Company’s financial statements beginning in the fourth quarter of 2013 and currently account for approximately $10 million per quarter in net operating income.
“We have been very proactive in repositioning our portfolio with a focused market strategy to invest in premier office properties in growing markets with solid fundamentals,” said Nelson Mills, President, Chief Executive Officer, and Director of Columbia Property Trust. “This transaction substantially increases our concentration in our top 10 markets, reduces our exposure to suburban markets and raises our percentage of multi-tenant properties.
“These premier office buildings have fulfilled their original purpose in providing stable income backed by long-term leases and investment-grade quality tenants, and the market interest we received certainly proved their value. The proceeds significantly increase our liquidity and enhance our ability to execute value creation and growth strategies.”Property Details
|1||2500 Windy Ridge||Atlanta||GA|
|2||4100 & 4300 Wildwood||Atlanta||GA|
|4||4241 Irwin Simpson Road||Cincinnati||OH|
|5||8990 Duke Boulevard||Cincinnati||OH|
|6||Chase Center Columbus||Columbus||OH|
|7||Sterling Commerce Center I - IV||Columbus||OH|
|8||4300 Centreway Place||Dallas||TX|
|9||One MacArthur Ridge||Dallas||TX|
|10||333 & 777 Republic Drive||Detroit||MI|
|11||Eagle Rock Executive Office Center IV||East Hanover||NJ|
|12||College Park Plaza||Indianapolis||IN|
|13||11200 W. Parkland Avenue||Milwaukee||WI|
|14||One Century Place||Nashville||TN|
|15||1200 Morris Drive||Philadelphia||PA|
|16||15815 25 th Avenue West||Seattle||WA|
|17||16201 25 th Avenue West||Seattle||WA|
|18||13655 Riverport Drive||St. Louis||MO|