Equity Office (NYSE:EOP)
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Equity Office (NYSE:EOP) announced a series of
investment transactions today, including the sale of nine
non-strategic assets totaling nearly 1.7 million square feet for
$314.3 million. Six of the buildings were owned in joint venture
partnerships resulting in total sale proceeds to EOP of $211.7
million. Equity Office also acquired two Class A office buildings -
11111 Sunset Hills Road in Reston, VA, and The Summit at Douglas Ridge
Phase II in Roseville, CA - for a total of approximately $69.4
million.
"We continue to pursue our previously announced plan to sell
non-strategic assets, and have sold a total of 5.2 million square feet
of assets year-to-date," commented Richard Kincaid, Equity Office's
president and chief executive officer. "Our goal is to redeploy the
capital and grow in our top 17 markets. Our acquisitions in the
Washington, D.C., and Sacramento markets support this strategy."
Dispositions
Year-to-date, Equity Office has sold $861.5 million in assets with
total proceeds to EOP of $746.7. In May 2005, the company sold the
following nine buildings:
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*T
Number of Total Building
Property Market Bldgs Square Footage Closing Date
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LL&E Tower New Orleans 1 545,157 5/4/05
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Preston Commons
and
Sterling Plaza(i) Dallas 4 721,351 5/20/05
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Oak Creek II San Jose 1 40,455 5/25/05
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Concar(i) San Francisco 2 218,985 5/26/05
----------------------------------------------------------------------
The Solarium Denver 1 162,817 5/27/05
----------------------------------------------------------------------
Totals 9 1,688,765
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(i) Owned by Equity Office in a joint venture.
*T
Acquisitions
The five-story 11111 Sunset Hills Road building (known locally as
the XO Communications Building) totals 216,469 square feet. The asset
is located in the Dulles Corridor of Washington, D.C.'s Reston
submarket. The building features excellent Dulles Toll Road exposure;
large, high-efficiency floor plates; and generous parking. With the
acquisition of this property, Equity Office owns four buildings
totaling more than 942,000 square feet in the submarket. As of March
31, 2005, the company's portfolio occupancy in the submarket was
99.2%.
The Summit at Douglas Ridge Phase II is a three-story,
93,349-square-foot Class A office building located in the Roseville /
Rocklin submarket, one of Sacramento's strongest submarkets. Equity
Office purchased the building, which is 22% pre-leased, at the
completion of its shell construction. The building is located near
executive housing in Granite Bay, and main arteries, including
Interstate 80, and highways 50 & 65. The addition of this asset brings
Equity Office's portfolio on Douglas Boulevard to more than 887,000
square feet. As of March 31, 2005, the company's portfolio occupancy
in the submarket was nearly 93%.
These transactions bring Equity Office's acquisition activity
year-to date to approximately $642.6 million, including the $505
million sales agreement for 1095 Avenue of the Americas, which is
scheduled to close by fourth quarter 2005.
Equity Office Properties Trust (NYSE:EOP), operating through its
various subsidiaries and affiliates, is the nation's largest office
real estate investment trust with a portfolio of 672 buildings
comprising 121.3 million square feet in 18 states and the District of
Columbia. Equity Office has an ownership presence in 27 Metropolitan
Statistical Areas (MSAs) and in 117 submarkets, enabling it to provide
a wide range of office solutions for local, regional and national
customers. For more company information, visit the Equity Office
website at www.equityoffice.com.
Forward - Looking Statements
This release includes certain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on management's present
expectations and beliefs about future events. As with any projection
or forecast, these statements are inherently susceptible to
uncertainty and changes in circumstances. Important factors that could
cause actual results to differ materially from those reflected in such
forward-looking statements and that should be considered in evaluating
this release and the outlook of Equity Office include, but are not
limited to, the following: declines in overall activity in our markets
have adversely affected our operating results and are expected to
continue to adversely affect our operating results until market
conditions further improve; in order to continue to pay distributions
to our common shareholders at current levels, we must borrow funds or
sell assets; we expect to be a net seller of real estate in 2005,
which will further reduce our income from continuing operations and
funds from operations and may result in gains or losses on sales of
real estate and impairment charges; our properties face significant
competition; we face potential adverse effects from tenant
bankruptcies or insolvencies; competition for acquisitions or an
oversupply of properties for sale could adversely affect us; and an
earthquake or terrorist act could adversely affect our business and
such losses, or other potential losses, may not be fully covered by
insurance. These and other risks and uncertainties are detailed from
time to time in Equity Office's filings with the SEC, including its
2004 Form 10-K filed on March 16, 2005 and Form 8-K filed on May 20,
2005. Equity Office is under no obligation to, and expressly disclaims
any obligation to, update or alter its forward-looking statements,
whether as a result of changes, new information, subsequent events or
otherwise.