City Office REIT to Acquire $76 Million of Office Properties in Florida
VANCOUVER, June 30, 2016 /PRNewswire/ -- City Office REIT, Inc. (NYSE: CIO) ("City Office" or the "Company") announced today that it has acquired Carillon Point in Tampa, Florida for a purchase price of $26.3 million and entered into a Purchase and Sale Agreement for the Research Park Collection in Orlando, Florida for $49.8 million. Combined, these acquisitions are anticipated to generate an initial full-year cash net operating income yield of approximately 8.3% based on the purchase price and the estimated cost of planned capital improvements.
Carillon Point is a Class A office building prominently located within the Carillon Office Park in St. Petersburg, Florida. It is a 124,187 net rentable square foot property that is 100% leased to a strong and diversified tenant roster. Carillon Point is centrally located in the Tampa Bay metropolitan area with a population of approximately 930,000 living within a 20-minute driving radius. The property offers outstanding water views of Lake Carillon and Tampa Bay.
The Research Park Collection 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. Three of the buildings have the distinct advantage of being the only privately owned properties within the Force Protection Zone for the PEO-STRI military facility. PEO-STRI is a mission-critical facility that provides training and simulation, research and development and procurement for various defense organizations. It is one of the largest employers in the area and is a key anchor for Orlando's high-tech simulation and defense industries. 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 major conditions for the acquisition have been satisfied, and the transaction is anticipated to close in mid-July 2016. City Office intends for the acquisition of certain of the Research Park Collection buildings to qualify for tax-deferred treatment under Section 1031 of the Internal Revenue Code, as amended (the "Code").
"These acquisitions are well positioned in quality locations within our target markets, have strong in-place tenancy and favorable acquisition metrics," said James Farrar, Chief Executive Officer of City Office. "We believe that our disciplined strategy of expanding our footprint in leading submarkets positions City Office to deliver 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 3.2 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.
Forward-looking Statements
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 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.
Contact
City Office REIT, Inc.
Anthony Maretic, CFO
+1-604-806-3366
[email protected]
SOURCE City Office REIT, Inc.
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