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 the Plaza Seven Office Tower located at 45 South
Seventh Street in downtown Minneapolis, Minnesota. Plaza Seven is a
36-story, Class “A” mixed-use tower that includes hotel, office and
parking components and is strategically positioned within the core of
the Minneapolis Central Business District. FSP acquired the office and
underground parking components of Plaza Seven. The office component
contains approximately 325,796 rentable square feet and is located
primarily on floors 18-36. A recently rebranded approximately 360-room
Radisson Blu hotel is located on floors 1-17 and was not part of our
acquisition.
The gross purchase price of the Plaza Seven Office Tower and the
underground parking garage was $82 million, or approximately $252 per
rentable square foot. The Company anticipates planned building capital
investments (excluding leasing costs) of approximately $1.9 million over
the next four years. Plaza Seven Office Tower is currently approximately
97% leased to a diverse group of tenants with staggered lease
expirations, with the largest being PricewaterhouseCoopers LLP for
approximately 20% of the rentable square footage until January 2029.
Approximately 30% of the Plaza Seven Office Tower’s leases expire over
the next three years at rents that we believe average approximately 15 –
20% below comparable current market rents. We believe that these
upcoming lease expirations provide us with a near term potential
opportunity to add value by marking leases to market.
The Company funded this acquisition with proceeds from non-core
dispositions, loan repayments and borrowings under its revolving credit
facility. No debt was assumed in connection with this acquisition.
This press release, along with other news about FSP, is available on the
Internet at www.franklinstreetproperties.com.
We routinely post information that may be important to investors in the
Investor Relations section of our website. We encourage investors to
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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.franklinstreetproperties.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 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/20160606006475/en/
For Franklin Street Properties Corp.
Georgia Touma, 877-686-9496
Source: Franklin Street Properties Corp.