VANCOUVER, June 23, 2014 /PRNewswire/ -- City Office REIT, Inc. (NYSE: CIO), announced today that it entered into an Agreement of Purchase and Sale to acquire Lake Vista Pointe in Dallas, Texas for a purchase price of $28.4 million. Lake Vista Pointe is a 163,000 square foot office property in the growing Lewisville, Texas submarket. The property was initially constructed to operate as a multi-tenant building in 2007 and subsequently became fully leased to Ally Financial, Inc. through 2021. The Lake Vista Pointe acquisition is anticipated to generate an initial full-year cash net operating income yield of approximately 7.8% based on the purchase price with contractual annual rent escalations. The major conditions to the acquisition have been satisfied and the transaction is anticipated to close in July 2014.
"Lake Vista Pointe represents a quality acquisition for City Office REIT in the growing Dallas, Texas market. The property is strategically located in a premium Lewisville business park and has a leading 6.6 per 1,000 parking ratio. Furthermore, Lake Vista Pointe is situated in close proximity to the Dallas/Fort Worth International Airport and three of Dallas' major highway systems including the Sam Rayburn Tollway (SH 121), Interstate 35 and Texas State Highway 114. The Lewisville submarket is situated in the North Texas growth corridor and the population within a three-mile radius has increased by 25% since 2000," said James Farrar, Chief Executive Officer of City Office REIT. "The Dallas/Fort Worth market offers favorable economic trends for owners of office properties. It is forecasted by Moody's Economy.com to rank first in both population and job growth between 2012 and 2017. City Office REIT continues to review a strong pipeline of acquisition opportunities within our target markets and we remain focused on growing our portfolio and enhancing stockholder value."
About City Office REIT, Inc.
City Office REIT is a real estate company focused on owning high-quality office properties in attractive markets primarily in the Southern and Western United States. City Office REIT currently owns or has an interest in 2.1 million square feet of office properties. Additional information about City Office REIT is available on the company's website at www.cityofficereit.com. The Company intends to elect 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. Forward looking statements reflect our current expectations concerning future results, objectives, plans and goals, and involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause future results, performance or achievements to differ. These risks, uncertainties and other factors include factors described in our news releases and filings with the Securities and Exchange Commission. The Company does not have any obligation to publicly update any forward looking statements to reflect subsequent events or circumstances.
City Office REIT, Inc.
SOURCE City Office REIT, Inc.