CMCT Announces Penn Field, a 228,000-Square-Foot Creative Office Campus in Austin, Expected to Reach 99 Percent Leased
January 24 2022 - 8:30AM
Business Wire
CIM Commercial Trust Corporation ("CMCT”) (NASDAQ: CMCT and
TASE: CMCT-L) announced today that its Penn Field property located
at 3601 South Congress Avenue in Austin, Texas is now approximately
97% leased, up from approximately 85% in third quarter of 2021. In
the fourth quarter 2021, three leases were executed at Penn Field
including a 10-year, 20,532-square-foot lease with a premier
technology company. Subsequent to signing this lease, this
technology company exercised its right to take additional space
that would increase the property to 99% leased.
Penn Field, an approximately 228,000-square-foot, 16-acre,
mixed-use property located in Austin’s “SoCo” Business District,
was originally developed in 1918 as an air base for the U.S. Army.
The industrial buildings of post-World War I design have been
transformed over time into what is today, a lushly landscaped
campus with meandering pathways shaded by mature trees. The
property has a diverse tenant base including technology, media, and
entertainment companies.
CMCT acquired the creative office campus in 2007 and during its
ownership, in-place rents have increased more than threefold. In
2020, CMCT completed a new $15 million, 44,000-square-foot,
two-story office building at the Penn Field office campus and
leased the entire building to F45 Training for its new corporate
headquarters. The return on cost of this $15 million development
(based on the first year of stabilized net operating income) is
expected to approximate 11% and contribute $0.03 per share in
annualized funds from operations.
About CIM Commercial Trust Corporation (“CMCT”)
CMCT is a real estate investment trust that primarily owns and
operates Class A and creative office real assets in vibrant and
improving metropolitan communities throughout the United States.
CMCT, supported by the broad real estate capabilities of CIM Group,
seeks to focus on the acquisition, ownership, operation and
development of cash flowing creative office, multifamily, retail,
parking, infill industrial and limited service hospitality real
assets in communities qualified by CIM Group. CMCT is operated by
affiliates of CIM Group, L.P., a vertically-integrated owner and
operator of real assets with multi-disciplinary expertise and
in-house research, acquisition, credit analysis, development,
finance, leasing, and onsite property management capabilities.
(www.cimcommercial.com).
Forward-Looking Statements
This press release contains certain “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 (the “Exchange
Act”), which are intended to be covered by the safe harbors created
thereby. Such forward-looking statements can be identified by the
use of forward-looking terminology such as “may,” “will,”
“project,” “target,” “expect,” “intend,” “might,” “believe,”
“anticipate,” “estimate,” “could,” “would,” “continue,” “pursue,”
“potential,” “forecast,” “seek,” “plan,” or “should” or the
negative thereof or other variations or similar words or phrases.
Such forward-looking statements include, among others, statements
about CMCT’s plans and objectives relating to future growth, the
amount of any future common stock dividend increase and estimates
of the savings to be achieved from the reduced fee structure. Such
forward-looking statements are based on particular assumptions that
management of CMCT has made in light of its experience, as well as
its perception of expected future developments and other factors
that it believes are appropriate under the circumstances.
Forward-looking statements are necessarily estimates reflecting the
judgment of CMCT’s management and involve a number of risks and
uncertainties that could cause actual results to differ materially
from those suggested by the forward-looking statements. These risks
and uncertainties include those associated with (i) the scope,
severity and duration of the current pandemic of COVID-19, and
actions taken to contain the pandemic or mitigate its impact, and
the winding-down or termination of governmental assistance programs
implemented to address the pandemic, (ii) the adverse effect of
COVID-19 on the financial condition, results of operations, cash
flows and performance of CMCT and its tenants and business
partners, the real estate market and the global economy and
financial markets, among others, (iii) the timing, form, and
operational effects of CMCT’s development activities, (iv) the
ability of CMCT to raise in place rents to existing market rents
and to maintain or increase occupancy levels, (v) fluctuations in
market rents, including as a result of COVID-19, and (vi) general
economic, market and other conditions. Additional important factors
that could cause CMCT’s actual results to differ materially from
CMCT’s expectations are discussed under the section “Risk Factors”
in CMCT’s Annual Report on Form 10-K for the year ended December
31, 2020 filed with the Securities and Exchange Commission (“SEC”)
on March 16, 2021 and amended on April 30, 2021 (the “2020. Form
10-K”). The forward-looking statements included herein are based on
current expectations and there can be no assurance that these
expectations will be attained. Assumptions relating to the
foregoing involve judgments with respect to, among other things,
future economic, competitive and market conditions and future
business decisions, all of which are difficult or impossible to
predict accurately and many of which are beyond CMCT’s control.
Although we believe that the assumptions underlying the
forward-looking statements are reasonable, any of the assumptions
could be inaccurate and, therefore, there can be no assurance that
the forward-looking statements included herein will prove to be
accurate. In light of the significant uncertainties inherent in the
forward-looking statements included herein, the inclusion of such
information should not be regarded as a representation by CMCT or
any other person that CMCT’s objectives and plans will be achieved.
Readers are cautioned not to place undue reliance on
forward-looking statements. Forward-looking statements speak only
as of the date they are made. CMCT does not undertake to update
them to reflect changes that occur after the date they are made,
except as may be required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220124005243/en/
For CIM Commercial Trust Corporation Media Relations:
Karen Diehl, Diehl Communications, 310-741-9097
karen@diehlcommunications.com or Shareholder Relations: Steve
Altebrando, 646-652-8473 shareholders@cimcommercial.com
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