CHICAGO-Scratch Sacramento, CA off the list of markets where Trizec Properties, Inc. has holdings. The REIT exited another market it considers non-core by selling the 10-building, 529,000-sf Capital Center II and III in Rancho Cordova, CA to Hines US Office Value Added Fund for $69.5 million.

The sale is part of Trizec Properties’ strategy of consolidating its holdings in its seven core markets, using the proceeds to pay down debt. Among the markets the REIT still hopes to exit are Baltimore, Charlotte, NC, Pittsburgh and St. Louis. Trizec Properties, which has a 41-million-sf portfolio, owns at least one million sf in each of the latter three markets.

“We anticipate making additional progress on this strategy before the close of 2004,” says Trizec Properties, Inc. president and chief executive officer Tim Callahan.

Occupancy at Capital Center II and III was most recently 73.5%. Published net lease rates at the property range from $12 per sf to $22 per sf.

In addition, Trizec Properties reports two smaller sales in Columbia, SC and Dallas. In Columbia, Peach Tree Properties paid $12.4 million for 1333 Main St., which has 203,000 sf of office space and 22,000 sf of retail space. In suburban Dallas, Hartman Realty acquired the 128,000-sf Park Central I asset for $4.8 million.

The sale of 1333 Main St., 83% occupied at the end of the second quarter, leaves Trizec Properties with one Columbia property–the 303,000-sf Bank of America Plaza. Although Dallas is one of the REIT’s core markets, Park Central I was 26% vacant, higher than the other four Dallas area assets, which are at least one million sf.

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