VANCOUVER, July 13, 2016 /PRNewswire/ -- City Office
REIT, Inc. (NYSE: CIO) ("City Office" or the "Company") announced
today the closing of the previously announced acquisition of the
Research Park Collection in
Orlando, Florida for a purchase
price of $49.8 million, exclusive of
closing costs. The property includes five Class A office
buildings and a 10 acre land parcel within the Central Florida
Research Park, the fourth largest research park in America. The
Research Park Collection's five
buildings total 272,192 square feet of net rentable area and are
93% leased to a strong and diversified tenant roster, including
various military entities and defense contractors.
The acquisition is anticipated to generate an initial full-year
net operating income yield of approximately 8.4% based on the
purchase price and the estimated cost of planned capital
improvements. City Office has acquired certain of the
Research Park Collection buildings
with funds from the previously announced sale of the Corporate
Parkway property to qualify for tax-deferred treatment under
Section 1031 of the Internal Revenue Code, as amended (the
"Code").
"We are pleased to complete the acquisition of the Research
Park Collection," said James Farrar, Chief Executive Officer of City
Office. "We acquired these well-located properties at both a
compelling yield and an attractive cost base. Orlando is a leading market for both job and
population growth and this transaction enhances our ability to
provide shareholders with long-term cash flow
growth."
About City Office REIT, Inc.
City Office REIT is an internally-managed real estate company
focused on acquiring, owning and operating high-quality office
properties located in leading markets in the Southern and Western
United States. City Office currently owns or has an interest
in 3.5 million square feet of office properties. Additional
information about City Office is available on the Company's website
at www.cityofficereit.com. The Company has elected 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. These factors include, but are not limited to,
the Company's ability to source, acquire and close on properties,
including properties appropriate for like-kind exchange under the
Code, on attractive terms, or at all; the Company's expectations
and forecasts of its cash flows and future leasing activity at its
current and future properties, and the Company's ability to
accurately model the income yield, capitalization rate, and other
financial metrics used to evaluate its properties. These and other
material risks are described in the Company's Annual Report on Form
10-K for the year ended December 31,
2015 and any other documents filed by the Company from time
to time, which are available from the Company and from the SEC, and
you should read and understand these risks when evaluating any
forward-looking statement. 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
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SOURCE City Office REIT, Inc.