VANCOUVER, March 9, 2018 /PRNewswire/ -- City Office REIT, Inc. (NYSE: CIO) ("City Office" or the "Company") announced today that it has completed the previously announced sale of its Washington Group Plaza property in Boise, Idaho for a gross sale price of $86.5 million before customary closing and transaction costs.
Proceeds from the sale will be used to repay approximately $32.1 million of mortgage debt and for general working capital purposes, including repayment of amounts outstanding under the Company's Secured Credit Facility and potential future property acquisitions. The Company structured the transaction as a part of a reverse like-kind exchange under Section 1031 of the Internal Revenue Code, as amended.
"The four office buildings that comprise Washington Group Plaza were contributed to City Office as part of the initial public offering in April 2014," said Greg Tylee, Chief Operating Officer and President. "Since that time, we have implemented substantial operational improvements and cost savings, increased the square footage of the buildings by 23,000 square feet through re-measurement and most recently completed a 148,000 square foot lease to St. Luke's. These efforts demonstrate our ability to create and realize value for our shareholders at the property level."
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 4.6 million square feet of office properties. 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 acquire additional properties on the terms and timing it expects, if at all. These and other material risks are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 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
SOURCE City Office REIT, Inc.