TIER REIT Announces Sale of FOUR40
June 20 2016 - 4:30PM
Business Wire
TIER REIT, Inc. (NYSE:TIER), a Dallas-based real estate
investment trust, announced today that it completed the sale of its
FOUR40 office building located at 440 South LaSalle Street in
Chicago, Illinois, for $191 million to a third party. The company
is entitled to an additional payment of up to $12.5 million subject
to future performance of the property. FOUR40 is a 39-story office
tower located in Chicago’s Central Loop submarket with over one
million square feet of rentable space. This milestone transaction
represents the company’s final sale of its Chicago office
portfolio, the net proceeds from which will be used to repay
borrowings outstanding on the revolving portion of the company’s
credit facility and a near-term maturing property mortgage
loan.
“Year-to-date, we have completed approximately $260 million of
non-strategic property sales, while continuing to market for sale
additional non-strategic properties,” said Scott Fordham, Chief
Executive Officer and President of TIER REIT. “This sale is
consistent with our strategic plan to dispose of properties that do
not fit our long-term hold objectives, exit non-strategic markets,
and utilize the capital to further strengthen our balance
sheet.”
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 relating
to the business and financial outlook of TIER REIT, Inc. that are
based on current expectations, estimates, forecasts and projections
and are not guarantees of future performance. Statements contained
herein may be impacted by a number of risks and uncertainties,
including the company’s ability to rent space on favorable terms,
its ability to address debt maturities and fund its capital
requirements, the value of its assets, its anticipated capital
expenditures, and other matters. Actual results may differ
materially from those expressed in these forward-looking
statements, and you should not place undue reliance on any such
statements. A number of important factors could cause actual
results to differ materially from the forward-looking statements
contained in this document, as well as other factors described in
the Risk Factors section of TIER REIT, Inc.’s Annual Report on Form
10-K for the 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 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/20160620006345/en/
TIER REIT, Inc.Scott McLaughlin,
972-483-2465smclaughlin@tierreit.com
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