Franklin Street Properties Corp. Announces Acquisition of Dominion Towers in Downtown Denver, Colorado
December 02 2016 - 8:30AM
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
16th Street 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 16th Street 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.
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For Franklin Street Properties Corp.Georgia Touma,
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