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Columbia Property Trust Accelerates Focused Market Strategy With Sale Of 18 Properties For $521.5 Million

Stocks in this article: CXP

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

        Property Name       Market       ST
1       2500 Windy Ridge       Atlanta       GA
2       4100 & 4300 Wildwood       Atlanta       GA
3       4200 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
                 

Property management and leasing of each property is anticipated to transition to Griffin Capital Corporation.

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