X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-In its first quarter, Equity Office Properties Trust released 1.6 million sf for a total of $297.6 million, while bringing in a $1.3 billion gain during its second quarter of 2005. With the bulk of released properties located in California, disposed assets across the country totaled nearly 10 million sf.

Richard Kincaid, Equity Office’s president and chief executive officer, says that with year-to-date sales totaling $1.6 billion, the company is on target to sell $2 billion to $3 billion of assets by year-end. “It is the right business decision to take advantage of today’s strong asset-sale environment to sell non-strategic properties,” Kincaid says.

The company expects to identify approximately $80 million of gains and $170 million of non-cash impairment charges related to sales closing in the second quarter. The company notes a $200 million to $215 million impairment charge due to accelerated disposition plans and a reduction in the intended holding period on 53 additional assets (totaling 6.7 million sf) anticipated to sell after June 30, 2005. This is expected to reduce net income and FFO in the company’s second quarter results.

In the first quarter, disposed properties include: Northland Plaza, Bloomington, MN; Meier Central North-Buildings 13 and 14, Santa Clara, CA; Water’s Edge, Marina Del Rey, CA; One, Two & Three Devon Square, Wayne, PA; Meier Central South-Building 12, Santa Clara, CA; One, Two, Three, Four & Five Valley Square, Oak Hill Plaza, Walnut Hill Plaza and Four Falls, Suburban, PA; Oak Creek I, Milpitas, CA; and Meier Central North-Building 15, Santa Clara, CA.

In its second quarter, EOP released the following properties: 545 E. John Carpenter Freeway and 909, Lake Carolyn Parkway, Irving, TX; Colonnade I, II, and III, Dallas; Preston Commons and Sterling Plaza, Dallas; 70-76 Perimeter Center, Atlanta; LL&E Tower, New Orleans; The Solarium, Denver; and BP Tower/Garage, Cleveland.

Second quarter assets released in California include: Meier Central South-Building 11, Santa Clara; Oak Creek II, Milpitas; Concar, San Mateo; Point West I and Point West III, Sacramento; Sierra Point, Brisbane/ Daly City; 301 Howard Street and Foundry Square II, San Francisco; Parkside Towers, Foster City; San Rafael Corporate Center and Land, San Rafael; Shoreline Technology Park, Mountain View; Seaport Centre and Seaport Plaza, Redwood City; 1871 The Alameda, North San Jose; 5813 Shellmound Street, 5855 Christie and Baybridge Office Plaza, Emeryville.

While selling off non-core assets, Kincaid says the company plans to focus on its strongest properties and targeted growth markets. Moving forward, the company plans to expand holdings in the following markets: Atlanta; Austin; Boston; Chicago; Denver; Los Angeles; Oakland East Bay, CA; Orange County, CA; New York; Portland, OR; Sacramento; San Diego; San Francisco; San Jose, CA; Seattle; Stanford, CT; and Washington, DC. To date, Equity Office Properties Trust boasts a portfolio of 634 buildings comprising 117.4 million total office portfolio sf in 18 states and the District of Columbia.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.