VANCOUVER, April 20, 2015 /PRNewswire/ -- City Office REIT,
Inc. (NYSE: CIO) announced today that it has entered into an
Agreement of Purchase and Sale to acquire Superior Pointe in the
Denver, Colorado metropolitan area
for a purchase price of $25.8
million. Superior Pointe is a 149,006 square foot
Class 'A' multi-tenant office property that is 90% occupied in the
growing Northwest/Boulder
submarket. The acquisition is anticipated to generate an initial
full-year cash net operating income yield of approximately 7.5%
based on the purchase price and the planned capital
improvements. The major conditions to the acquisition have
been satisfied and the transaction is anticipated to close in
June 2015.
"Superior Pointe represents a quality acquisition for City
Office REIT with strong in-place cash flow from credit tenants. The
property is ideally located in Boulder
County, near downtown Boulder which continues to experience
unprecedented tenant demand, high occupancy levels and rental
rates. Superior Pointe's elevated location off the US 36
highway offers unobstructed mountain views, and easy access to
nearby restaurant and retail amenities including Superior
Marketplace and FlatIron Crossing. This submarket continues
to attract high quality tenants including leading technology and
financial services firms due to its close proximity to Boulder, the University
of Colorado, surrounding executive housing and some of the
best amenities in Denver. Because Superior Pointe is one of
the premiere quality properties in the area, it is able to offer a
strong value proposition to attract and retain tenants," said
James Farrar, Chief Executive
Officer of City Office REIT. "We are pleased with Superior Pointe's
acquisition metrics and discount to replacement cost. The
expected year one cash net operating income yield is 7.5% upon the
completion of our planned improvements including a resurfaced
parking lot. The buildings were constructed in 2000 and are
in very good condition with quality finishes and efficient floor
plates for both single and multi-tenant use."
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, CFO
+1-604-806-3366
investorrelations@cityofficereit.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/city-office-reit-to-acquire-office-property-in-denver-colorado-300068126.html
SOURCE City Office REIT, Inc.