VANCOUVER, Feb. 4, 2015 /PRNewswire/ -- City Office
REIT, Inc. (NYSE: CIO), announced today that it has acquired
Logan Tower in Denver, Colorado for a purchase price of
$10.5 million. Logan Tower is a
69,968 square foot multi-tenant office building that is 95%
occupied and located in downtown Denver. The acquisition is
anticipated to generate an initial full-year cash net operating
income yield of approximately 8.0% based on the purchase
price. The purchase was closed all cash and the property will
be contributed to City Office REIT's credit facility as additional
security.
"Logan Tower is well located in
Denver's uptown submarket and is
adjacent to both the central business district and the State
Capitol. The property was recently renovated and has a
diversified and stable tenant base. The acquisition price is
approximately $150 per square foot,
which offers great value and a significant discount to replacement
cost," said James Farrar, Chief
Executive Officer of City Office REIT. "Logan Tower provides an attractive in-place cash
flow in one of our key target markets, with substantial upside as
leases roll. The current gross rental rate is approximately
$18.00 per square foot which is an
estimated $5.00 per square foot below
current market rates. Over the next five years, we expect to
generate materially higher net operating income as under market
leases rollover."
About City Office REIT, Inc.
City Office REIT is a real estate company focused on owning
high-quality office properties in attractive markets primarily in
the Southern and Western United States. City Office REIT
currently owns or has an interest in 2.4 million square feet of
office properties. Additional information about City Office
REIT is available on the company's website at
www.cityofficereit.com. The Company intends to elect to be
taxed as a real estate investment trust for U.S. federal income tax
purposes.
Forward-looking Statements
This press release contains "forward looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 and other federal
securities laws. All statements that are not statements of
historical facts are, or may be deemed to be, forward looking
statements. Forward looking statements reflect our current
expectations concerning future results, objectives, plans and
goals, and involve known and unknown risks, uncertainties and other
factors that are difficult to predict and which may cause future
results, performance or achievements to differ. These risks,
uncertainties and other factors include factors described in our
news releases and filings with the Securities and Exchange
Commission. The Company does not have any obligation to
publicly update any forward looking statements to reflect
subsequent events or circumstances.
Contact
City Office REIT, Inc.
Anthony Maretic
+1-604-806-3366
investorrelations@cityofficereit.com
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SOURCE City Office REIT, Inc.