VANCOUVER, July 13, 2016 /PRNewswire/ -- City Office REIT, Inc. (NYSE: CIO) ("City Office" or the "Company") announced today the closing of the previously announced acquisition of the Research Park Collection in Orlando, Florida for a purchase price of $49.8 million, exclusive of closing costs. The property includes five Class A office buildings and a 10 acre land parcel within the Central Florida Research Park, the fourth largest research park in America. The Research Park Collection's five buildings total 272,192 square feet of net rentable area and are 93% leased to a strong and diversified tenant roster, including various military entities and defense contractors.
The acquisition is anticipated to generate an initial full-year net operating income yield of approximately 8.4% based on the purchase price and the estimated cost of planned capital improvements. City Office has acquired certain of the Research Park Collection buildings with funds from the previously announced sale of the Corporate Parkway property to qualify for tax-deferred treatment under Section 1031 of the Internal Revenue Code, as amended (the "Code").
"We are pleased to complete the acquisition of the Research Park Collection," said James Farrar, Chief Executive Officer of City Office. "We acquired these well-located properties at both a compelling yield and an attractive cost base. Orlando is a leading market for both job and population growth and this transaction enhances our ability to provide shareholders with long-term cash flow growth."
About City Office REIT, Inc.
City Office REIT is an internally-managed real estate company focused on acquiring, owning and operating high-quality office properties located in leading markets in the Southern and Western United States. City Office currently owns or has an interest in 3.5 million square feet of office properties. Additional information about City Office is available on the Company's website at www.cityofficereit.com. The Company has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements that are not statements of historical facts are, or may be deemed to be, forward-looking statements. These factors include, but are not limited to, the Company's ability to source, acquire and close on properties, including properties appropriate for like-kind exchange under the Code, on attractive terms, or at all; the Company's expectations and forecasts of its cash flows and future leasing activity at its current and future properties, and the Company's ability to accurately model the income yield, capitalization rate, and other financial metrics used to evaluate its properties. These and other material risks are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and any other documents filed by the Company from time to time, which are available from the Company and from the SEC, and you should read and understand these risks when evaluating any forward-looking statement. The Company does not have any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.
City Office REIT, Inc.
Anthony Maretic, CFO
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SOURCE City Office REIT, Inc.