TIER REIT Completes Property Transactions
January 18 2017 - 5:16PM
Business Wire
Announces Two Non-Core Dispositions &
Consolidation of Ownership at The Domain
TIER REIT, Inc. (NYSE: TIER), a Dallas-based real estate
investment trust, announced today that the Company has completed
the sale of an interest in the entity that indirectly owns the
Wanamaker Building as well as a sale of its Buena Vista Plaza
office building.
The Wanamaker Building is a mixed-use property located in Center
City Philadelphia with approximately 1.4 million square feet. The
Company has owned a non-controlling interest in the entity that
indirectly owns the property since 2007, and sold a majority of
this interest for approximately $114 million, including assumption
of debt, to an unrelated third party on January 17, 2017. Buena
Vista Plaza is an office building located in the Media Business
District of Burbank, California, with approximately 115,000 square
feet. The property was sold today to an unrelated third party for
$52.5 million.
“These sales mark an important milestone for the Company,”
stated Scott Fordham, President and Chief Executive Officer of TIER
REIT. “Utilizing proceeds from the sale of our interest in the
Wanamaker Building to reduce leverage, we have now substantially
completed the strengthening phase of our strategic plan. Further,
the sale of Buena Vista Plaza continues the Company’s efforts to
exit properties located in non-target markets and begins the
recycling phase of our strategic plan.”
Additionally, the Company announced the acquisition of its
partner’s approximate 51% interest in Domain 2 and Domain 7 for a
contract price of $51.2 million and assumption of debt. The
properties total approximately 337,000 square feet of existing
office space located at The Domain, a premier, high-density,
mixed-use development in northwest Austin, Texas, that encompasses
office, retail, entertainment, hospitality and multi-family across
a 300-acre park-like setting. The Company acquired various real
estate interests in The Domain in July 2015, including its joint
venture interests in Domain 2 and Domain 7, which are now wholly
owned by the Company. Today, the Company’s assets at The Domain
include a 100% interest in 669,000 square feet of existing office
properties; an approximate 50% interest in a 291,000 square foot
development project that is currently 94% leased and scheduled to
deliver in March 2017; and land for development that can
accommodate up to 1.3 million square feet of additional office
space.
“The Domain represents the epitome of live, work and play, and
we are pleased to expand and consolidate our ownership in this
dynamic office submarket,” said Mr. Fordham. “In so doing, we have
obtained direct access to a notable cache of high-credit and fast
growing tenants as well as strategic rights to parking, ingress and
egress, and the property owners association, which we believe
provides us the best opportunity to optimize value as we continue
the prudent execution of our build-to-core development
program.”
“Further, we continue to market additional properties for sale
located in our non-target markets,” added Mr. Fordham. “With the
start of the recycling phase of our strategic plan, we expect to
exit several of these remaining markets, with the ability to
recycle the sales proceeds into new developments or select
strategic investments within our target growth markets.”
About TIER REIT, Inc.
TIER REIT, Inc. is a self-managed, Dallas-based real estate
investment trust focused on delivering outsized stockholder return
through stock price appreciation and dividend growth while offering
unparalleled tenant service. TIER REIT’s investment strategy is to
acquire, develop and operate a portfolio of best-in-class office
properties in select U.S. markets that consistently lead the nation
in both population and office-using employment growth. Within these
markets, we target TIER1 submarkets, which are primarily urban and
amenity-rich locations. For additional information regarding TIER
REIT, please visit www.tierreit.com or call 972.483.2400.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws relating to the business
and financial outlook of TIER REIT that are based on our current
expectations, estimates, forecasts and projections and are not
guarantees of future performance. These forward-looking statements
include discussion and analysis of the financial condition of us
and our subsidiaries, including our ability to rent space on
favorable terms, our ability to address debt maturities and fund
our capital requirements, our intentions to sell certain
properties, our intentions with respect to development activity,
the value of our assets, our anticipated capital expenditures, the
amount and timing of any anticipated future cash distributions to
our stockholders, and other matters. Words such as “may,” “will,”
“anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,”
“estimates,” “would,” “could,” “should,” “objectives,”
“strategies,” “goals,” and variations of these words and similar
expressions are intended to identify forward-looking
statements.
Actual results may differ materially from those expressed in
these forward-looking statements, and you should not place undue
reliance on any such statements. Factors that could cause actual
results to vary materially from those expressed in forward-looking
statements include changes in real estate conditions and in the
capital markets, as well as the risk factors included in our Annual
Report on Form 10-K for the fiscal year ended December 31, 2015.
Forward-looking statements in this press release speak only as of
the date on which such statements were made and, except as required
by law, we undertake no obligation to update any such statements
that may become untrue because of subsequent events.
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version on businesswire.com: http://www.businesswire.com/news/home/20170118006310/en/
TIER REIT, Inc.Scott McLaughlin,
972-483-2465smclaughlin@tierreit.com
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