Piedmont Office Realty Completes $160M Sale; $74M Acquisition
The 527,338-square-foot 800 North Brand Blvd. office tower in Glendale, CA was acquired from Piedmont Office Realty by Beacon Capital Partners, according to multiple press reports.
ATLANTA—Piedmont Office Realty Trust reports it has completed the $160-million sale of its 800 North Brand Blvd. office building in Glendale, CA, as well as the purchase of a Burlington, MA property for approximately $74 million.
The 527,338-square-foot 800 North Brand Blvd. office tower in Glendale, CA was acquired from Piedmont Office Realty by Beacon Capital Partners, according to multiple press reports. The deal closed on Nov. 30.
Atlanta-based Piedmont Office Realty added the nearly 288,000 square-foot 25 Burlington Mall Road office property in Burlington, MA to its portfolio. The property is presently 88% leased to a tenant roster anchored by Lahey Hospital & Medical Center, and Bank of America, Merrill Lynch.
The office building is located in close proximity to Burlington’s shopping, dining and entertainment options and adjacent to the Boston Marriott Burlington Hotel. The purchase transaction was completed on Dec. 12.
Donald A. Miller, CFA, Piedmont’s CEO, said the disposition and acquisition transactions are reflective of the company’s strategy of disposing of select non-core and mature assets at low yields and reinvesting proceeds into its strategic markets where Piedmont has an existing presence and dominant market share.
“When you analyze the combined capital allocation decisions we made during the fourth quarter (including the previously announced acquisition of 9320 Excelsior Boulevard near Minneapolis, MN for $49 million on Oct. 25), we estimate Piedmont will realize approximately $0.03 per share annualized in FFO accretion, while paying down debt by approximately $35 million,” Miller says.
In terms of the company’s purchase of its new asset in Massachusetts, C. Brent Smith, president and chief investment officer of Piedmont, states, “The Mall Road purchase builds upon our dominant position on Rt. 128N in Boston, within close proximity to four other Piedmont-owned assets in Burlington. This acquisition will allow us to expand our operational synergies and capture almost 40% of the Class-A market share in this quality Boston submarket.”
Piedmont Office Realty is an owner, manager, developer, and operator of high-quality, Class A office properties located in eight major cities in the eastern half of the US. The REIT’s nearly $5-billion portfolio totals approximately 17 million square feet of office space.