CHICAGO-With the $29-million sale of the Borden Building in Columbus, OH, Trizec Properties, Inc. has exited its fourth non-core market since the beginning of 2003, with buildings in eight other markets up for sale. In addition, REIT officials say they are not afraid to sell at least one property in their core markets “where pricing is exceptional,” according to chief investment officer Casey Wold during Trizec Properties’ earnings conference call.

The 34-story, 569,000-sf Borden Building was only 71.3% occupied, the third-worst performer in the REIT’s entire 41-million-sf portfolio. However, the $51 per sf was about half the appraised value three years ago, and even sharper discount to replacement value. “Our view there was to exit the Columbus market, and there was a ton of roll-over,” Wold explains.

Elsewhere, Wold says investors have come looking at properties in the non-core markets, as they have been priced out of larger markets. “We’ve known for some time that we’d be a seller,” Wold says. “For many of these properties, the time is now.”

The largest non-core assets are the 1.5-million-sf Gateway Center in Pittsburgh and one-million-sf Metropolitan Square in St. Louis. The company also has two assets in Charlotte, NC totaling 1.4 million sf.

Although Trizec Properties is paying $440 million for the Bank of America Plaza in Downtown Los Angeles, president and chief executive officer Timothy Callahan says the REIT will be a net seller this year. Wold says the company could generate up to $400 million in sales over the next 12 months, on top of the $150 million the company realized in second-quarter property sales.

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