VANCOUVER, April 20, 2015 /PRNewswire/ -- City Office REIT, Inc. (NYSE: CIO) announced today that it has entered into an Agreement of Purchase and Sale to acquire Superior Pointe in the Denver, Colorado metropolitan area for a purchase price of $25.8 million. Superior Pointe is a 149,006 square foot Class 'A' multi-tenant office property that is 90% occupied in the growing Northwest/Boulder submarket. The acquisition is anticipated to generate an initial full-year cash net operating income yield of approximately 7.5% based on the purchase price and the planned capital improvements. The major conditions to the acquisition have been satisfied and the transaction is anticipated to close in June 2015.
"Superior Pointe represents a quality acquisition for City Office REIT with strong in-place cash flow from credit tenants. The property is ideally located in Boulder County, near downtown Boulder which continues to experience unprecedented tenant demand, high occupancy levels and rental rates. Superior Pointe's elevated location off the US 36 highway offers unobstructed mountain views, and easy access to nearby restaurant and retail amenities including Superior Marketplace and FlatIron Crossing. This submarket continues to attract high quality tenants including leading technology and financial services firms due to its close proximity to Boulder, the University of Colorado, surrounding executive housing and some of the best amenities in Denver. Because Superior Pointe is one of the premiere quality properties in the area, it is able to offer a strong value proposition to attract and retain tenants," said James Farrar, Chief Executive Officer of City Office REIT. "We are pleased with Superior Pointe's acquisition metrics and discount to replacement cost. The expected year one cash net operating income yield is 7.5% upon the completion of our planned improvements including a resurfaced parking lot. The buildings were constructed in 2000 and are in very good condition with quality finishes and efficient floor plates for both single and multi-tenant use."
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 2.4 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.
Anthony Maretic, CFO
SOURCE City Office REIT, Inc.