Franklin Street Properties Corp. Announces Acquisition of Plaza Seven Office Tower in Minneapolis, Minnesota
June 06 2016 - 4:30PM
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 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.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
Franklin Street Properties (AMEX:FSP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Franklin Street Properties (AMEX:FSP)
Historical Stock Chart
From Apr 2023 to Apr 2024