Equity Office Buys 1095 Avenue of the Americas in New York City For $505 Million
07 October 2005 - 12:26AM
Business Wire
Closes $173 Million in Additional Acquisitions in Austin and Palo
Alto; Sells Asset in Oakland/East Bay Equity Office Properties
Trust (NYSE:EOP) announced today that it has closed on the $505
million acquisition of 1095 Avenue of the Americas in New York
City. In addition, the company has acquired 300 West Sixth Street
in Austin for $131.7 million, and Clocktower Square in Palo Alto
for approximately $41.3 million. The company also sold Norris Tech
Center in Oakland/East Bay for approximately $44.7 million. "The
1095 Avenue of the Americas building is a strong addition to our
New York City portfolio," commented Richard Kincaid, Equity
Office's president and chief executive officer. "The acquisition
gives us the opportunity to deliver 1 million square feet of office
space in a submarket where availability of large blocks of
contiguous space is less than 4%. "We've also completed strong
asset acquisitions with 300 West Sixth Street and Clocktower
Square," he added. "These assets complement our existing local
portfolios and enable us to leverage our operating platform to
deliver a higher quality of customer service." 1095 Avenue of the
Americas In April 2005, Equity Office announced that it had signed
an agreement to acquire 1.03 million square feet, or nearly 80% of
1095 Avenue of the Americas, also known as the Verizon Building.
The acquisition included approximately 30,000 square feet of retail
space. As part of the transaction, which closed on September 29,
Verizon is retaining ownership of roughly 200,000 square feet, and
has a short-term lease at the building for approximately 1 million
square feet of office space. This lease will enable Verizon to
vacate the building during 2006. Equity Office is substantially
redeveloping the 41-story building, which has spectacular views of
Bryant Park and the New York skyline. The redevelopment includes
renovations to the building's facade, lobby, elevator cabs, common
areas and retail space. Full project completion is estimated by
mid-2008. The repositioning of the building includes tenant-naming
rights to signs atop the building. 300 West Sixth Street, Austin On
October 4, 2005, Equity Office acquired 300 West Sixth Street in
Austin. The 23-story, 446,637-square-foot Class A office building
is located in the core of Austin's central business district (CBD).
The building is 78% leased. With this acquisition, EOP owns nearly
1.9 million square feet in four buildings in Austin's CBD, and more
than 2.7 million square feet in the broader Austin market.
Clocktower Square, San Jose On September 27, Equity Office acquired
the buildings and a 51-year ground leasehold interest in Clocktower
Square, a four-building office complex totaling 97,133 square feet
that is situated on 5.9 acres in San Jose. The property is located
next to EOP's Palo Alto Square building in Stanford Research Park,
just one mile from Stanford University and four miles from Menlo
Park. Palo Alto is currently one of the strongest submarkets in the
country. With this acquisition, Equity Office owns nearly 1.1
million square feet in Palo Alto. Clocktower Square is 100% leased.
Forward - Looking Statements This release includes certain
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on management's present expectations and
beliefs about future events. As with any projection or forecast,
these statements are inherently susceptible to uncertainty and
changes in circumstances. Important factors that could cause actual
results to differ materially from those reflected in such
forward-looking statements and that should be considered in
evaluating this release and the outlook of Equity Office include,
but are not limited to, the following: declines in overall activity
in our markets have adversely affected our operating results and
are expected to continue to adversely affect our operating results
until market conditions further improve; in order to continue to
pay distributions to our common shareholders at current levels, we
must borrow funds or sell assets; we expect to be a net seller of
real estate in 2005, which will further reduce our income from
continuing operations and funds from operations and may result in
gains or losses on sales of real estate and impairment charges; our
ability to dispose of assets on terms we find acceptable will be
subject to market conditions we do not control; we may not be
successful in closing all of our pending investment transactions;
our properties face significant competition; we face potential
adverse effects from tenant bankruptcies or insolvencies;
competition for acquisitions or an oversupply of properties for
sale could adversely affect us; and an earthquake or terrorist act
could adversely affect our business and such losses, or other
potential losses, may not be fully covered by insurance. These and
other risks and uncertainties are detailed from time to time in
Equity Office's filings with the SEC, including its 2004 Form 10-K
filed on March 16, 2005 and Form 8-K filed on May 20, 2005. Equity
Office is under no obligation to, and expressly disclaims any
obligation to, update or alter its forward-looking statements,
whether as a result of changes, new information, subsequent events
or otherwise. Equity Office Properties Trust (NYSE:EOP), operating
through its various subsidiaries and affiliates, is the nation's
largest publicly held office building owner and manager with a
total office portfolio of 608 buildings comprising 113.5 million
square feet in 18 states and the District of Columbia. Equity
Office has an ownership presence in 26 Metropolitan Statistical
Areas (MSAs) and in 105 submarkets, enabling it to provide a wide
range of office solutions for local, regional and national
customers. For more company information visit the Equity Office Web
site at http://www.equityoffice.com.
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