WAKEFIELD, Mass.--(BUSINESS WIRE)--
Franklin Street Properties Corp. (the “Company”, “FSP”, “our” or
“we”) (NYSE MKT: FSP),a real estate investment trust (REIT),has acquired Dominion Towers located at 600 17th Street
in downtown Denver, Colorado (the “Property”). The Property consists of
two interconnected 19 and 28-story Class “A” office towers containing an
aggregate of approximately 613,527 rentable square feet. The Property is
situated in the center of downtown Denver, Colorado, within one block of
light rail access and adjacent to the 16thStreet Mall.
The gross purchase price of the Property was approximately $154 million,
which equates to $251 per rentable square foot. We believe that the
purchase price represents a substantial discount to estimated
replacement cost. The Company anticipates planned building capital
investments (excluding leasing costs) of approximately $3 million.
During 2017, we expect the Property to have an average occupancy rate of
approximately 89%, comprised of multiple tenants with staggered lease
expirations. EOG Resources, Inc. (NYSE: EOG) is currently the largest
tenant with approximately 29% of the rentable square footage until
December 2026.
The Company funded the acquisition of the Property with the proceeds of
a $150 million unsecured, two-year bridge loan with JPMorgan Chase Bank,
N.A. as administrative agent (the “Bridge Loan”) with the balance paid
from existing cash on hand. The material terms of the Bridge Loan are
set forth in a Current Report on Form 8-K filed earlier today with the
United States Securities and Exchange Commission. The Company
anticipates that the Bridge Loan will be repaid at maturity or earlier
from the proceeds of property dispositions. No debt secured by the
Property was assumed in connection with the acquisition of the Property.
Jeffrey B. Carter, President and Chief Investment Officer, commented as
follows:
“We are pleased to expand our footprint further in Denver with this
off-market acquisition. We believe that the acquisition of Dominion
Towers will provide additional opportunities for value creation by
growing our presence in downtown Denver to almost 2 million rentable
square feet. The Property is a Class ‘A’ office asset in a premier
location that provides world-class companies with walkable access to the
16thStreet Mall and light rail.”
Dominion Towers Presentation
A brief presentation outlining this acquisition can be accessed through
the link below or in the Investor Relations section of the Company’s
website at www.fspreit.com.
http://ir.franklinstreetproperties.com/Cache/1500093893.PDF?Y=&O=PDF&D=&fid=1500093893&T=&iid=4065591
This press release, along with other news about FSP, is available on the
Internet at www.fspreit.com.
We routinely post information that may be important to investors in the
Investor Relations section of our website. We encourage investors to
consult that section of our website regularly for important information
about us and, if they are interested in automatically receiving news and
information as soon as it is posted, to sign up for E-mail Alerts.
About Franklin Street Properties Corp.
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is
focused on investing in institutional-quality office properties in the
U.S. FSP’s strategy is to invest in select urban infill and central
business district (CBD) properties, with primary emphasis on our top
five markets of Atlanta, Dallas, Denver, Houston, and Minneapolis. FSP
seeks value-oriented investments with an eye towards long-term growth
and appreciation, as well as current income. FSP is a Maryland
corporation that operates in a manner intended to qualify as a real
estate investment trust (REIT) for federal income tax purposes. To learn
more about FSP please visit our website at www.fspreit.com.
Forward-Looking Statements
Statements made in this press release that state FSP’s or management’s
intentions, beliefs, expectations, or predictions for the future may be
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. This press release may also contain
forward-looking statements based on current judgments and current
knowledge of management, which are subject to certain risks, trends and
uncertainties that could cause actual results to differ materially from
those indicated in such forward-looking statements. Accordingly, readers
are cautioned not to place undue reliance on forward-looking statements.
Investors are cautioned that our forward-looking statements involve
risks and uncertainty, including without limitation, economic conditions
in the United States, disruptions in the debt markets, economic
conditions in the markets in which we own properties, risks of a
lessening of demand for the types of real estate owned by us, changes in
government regulations and regulatory uncertainty, uncertainty about
governmental fiscal and monetary policy, geopolitical events and
expenditures that cannot be anticipated such as utility rate and usage
increases, unanticipated repairs, additional staffing, insurance
increases and real estate tax valuation reassessments. See the “Risk
Factors” set forth in Part I, Item 1A of our Annual Report on Form 10-K
for the year ended December 31, 2015, as the same may be updated from
time to time in subsequent filings with the United States Securities and
Exchange Commission. Although we believe the expectations reflected in
the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements. We will
not update any of the forward-looking statements after the date of this
press release to conform them to actual results or to changes in our
expectations that occur after such date, other than as required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161202005093/en/
For Franklin Street Properties Corp.
Georgia Touma, 877-686-9496
Source: Franklin Street Properties Corp.