Columbia Completes its Planned Disposition Program, with $3.3 Billion in Total Asset Sales
ATLANTA & CLEVELAND--(BUSINESS WIRE)-- Columbia Property Trust, Inc. (NYSE: CXP) today announced that it has completed the sale of Cleveland’s iconic Key Center—a 1.3 million-square-foot, Class-A office tower—and the adjacent Marriott Hotel to Cleveland-based multi-family property development firm Millennia Housing Development Ltd. for a gross sales price of $267.5 million.
This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170131006425/en/
Columbia Property Trust has sold Cleveland's iconic Key Center to Cleveland-based firm Millennia Housing Development Ltd. for a gross sale price of $267.5 million. Photo Credit: Jacobs Real Estate Services
With this sale and exit of Cleveland, as well as its exit of the Houston market earlier this month, Columbia has completed $1.2 billion of dispositions since January 2016 and $3.3 billion since January 2012, taking advantage of favorable market conditions. Columbia will use proceeds from these sales for reinvestment in its target markets.
Key Center is an integrated, mixed-use complex that comprises a 57-story office tower, 400-room Marriott Hotel, and parking structure. Constructed in 1991, the multi-tenanted tower houses the headquarters of both the property’s namesake tenant, Key Bank, and law firm BakerHostetler. As of December 31, 2016, the office tower at Key Center was 82 percent leased.
“Key Center is the most recognizable icon on the Cleveland skyline, and we were determined to take a patient approach in order to identify the right buyer for this significant asset,” said Nelson Mills, president and chief executive officer of Columbia Property Trust. “Our diligence has now been rewarded, allowing us to exit the Cleveland market at a price within our expectations and accelerate our focus on high-barrier markets.
“Our planned disposition program is now complete,” noted Mills. “With $3.3 billion of assets sold in suburban and secondary markets since early 2012 and another $2.6 billion of acquisitions in markets such as New York and San Francisco, we now possess a truly remarkable high-barrier office portfolio.”
About Columbia Property Trust
Columbia Property Trust (NYSE: CXP) owns and operates 17 office properties containing eight million square feet, which are located in competitive, primarily CBD locations concentrated in San Francisco, New York, Atlanta and Washington, D.C. For more information about Columbia, which carries an investment-grade rating from both Moody’s and Standard & Poor’s, please visit columbia.reit.
Certain statements contained in this press release other than historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such statements include, in particular, statements about our plans, strategies, and prospects and are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We make no representations or warranties (express or implied) about the accuracy of any such forward-looking statements contained in this press release, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Any such forward-looking statements are subject to risks, uncertainties, and other factors and are based on a number of assumptions involving judgments with respect to, among other things, future economic, competitive, and market conditions, all of which are difficult or impossible to predict accurately. To the extent that our assumptions differ from actual conditions, our ability to accurately anticipate results expressed in such forward-looking statements, including our ability to generate positive cash flow from operations, make distributions to stockholders, and maintain the value of our real estate properties, may be significantly hindered. See Item 1A in the Company’s most recently filed Annual Report on Form 10-K for the year ended December 31, 2015, for a discussion of some of the risks and uncertainties that could cause actual results to differ materially from those presented in our forward-looking statements. The risk factors described in our Annual Report are not the only ones we face, but do represent those risks and uncertainties that we believe are material to us. Additional risks and uncertainties not currently known to us or that we currently deem immaterial may also harm our business.
Source: Columbia Property Trust, Inc.