Newton, MA (October 11, 2002). HRPT Properties Trust (NYSE: HRP) today announced that it has closed the acquisition of two large office buildings.
The larger of the two properties is Centre Square Office Building, 1500 Market Street, Philadelphia, Pennsylvania. This property contains approximately 1.77 million square feet of Class A office space in the center of downtown Philadelphia. The purchase price was $183.5 million plus closing costs. Centre Square is 97% occupied by 37 different tenants. The larger tenants representing a combined 62% of the total available space include Towers, Perrin, Forster & Crosby, Inc., a personnel services company, Comcast Corporation (NASDQ: CMCSA) and banking affiliates of Wachovia Corporation (NYSE: WB). As is customary in large central business district multi-tenant office buildings, the current leases expire on a staggered basis, but approximately 75% of the available space is leased to 2006 or beyond.
The other building acquired today is known as Corporate Center at Academy Park and is located in Lakewood, Colorado. This 213,000 sq. ft., Class A, suburban office property was purchased for $28.75 million plus closing costs. This property is 100% leased to the U.S. Government Department of the Interior to 2012.
HRPT funded these purchases with cash on hand plus drawings under its unsecured revolving bank credit facility.
Since the beginning of 2002, HRPT has acquired seven office properties, including the two properties announced today. These seven properties contain 3,322,000 sq. ft. and were purchased for approximately $388 million. At the time these properties were acquired they had a combined occupancy of 96% and the rents less operating costs produced current yields of approximately 10.9% of the purchase prices. Moreover, HRPT expects that rents reportable under generally accepted accounting principals which take account of scheduled rent increases in signed leases may produce higher yields. Also, because of changes which will occur in occupancy, rents and expenses over time, HRPT expects that the yields which will be realized from the properties it has purchased may be different from those historically experienced.
HRPT Properties Trust is a real estate investment trust headquartered in Newton, Massachusetts. HRPT currently owns office buildings which contain over 22 million square feet of space throughout the United States.
THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON HRPT’S CURRENT BELIEFS AND EXPECTATIONS, BUT THEY ARE NOT GUARANTEED. FOR EXAMPLE, THE RENTS IN EXCESS OF OPERATING EXPENSES MAY BE LESS THEN CURRENTLY EXPECTED DUE TO CHANGING MARKET CONDITIONS, INCREASED EXPENSES OR FOR OTHER REASONS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.
HRPT Properties Trust
© HRPT Properties Trust , 2008 - 10/11/2002 12:00 AM