ATLANTA & SAN FRANCISCO--(BUSINESS WIRE)--Columbia Property Trust, Inc. (NYSE: CXP) today announced that it has signed a new 86,225-square-foot, eight-year lease with financial technology company Affirm at 650 California Street in San Francisco. With this latest deal, as well as another 21,877-square-foot lease to renew and expand one of the building’s existing tenants, Columbia has now completed 199,676 square feet of leasing at the property over the past ten months. As a result, the 477,000-square-foot office building, which was 65 percent leased at the end of June 2016, will be 89 percent leased.
Affirm will occupy floors eight through twelve of 650 California and the annex of the building and is expected to relocate its headquarters to 650 California from 633 Folsom Street in August, 2017.
This new lease was executed just six weeks after Columbia announced a new lease with WeWork, one of the world’s largest providers of shared office space, to occupy 60,576 square feet in the building.
“The continued leasing momentum at 650 California is a validation of the value creation opportunity we saw when we acquired the building in late 2014,” said Nelson Mills, president and chief executive officer of Columbia Property Trust. “We set out to increase net operating income from the property by capitalizing on the significant roll and below market rents in place at that time by implementing thoughtful upgrades that would attract a diverse tenant base of top-tier firms. The execution of these new leases in the past two months demonstrates our success in fulfilling that objective.”
David Dowdney, senior vice president of the Western Region for Columbia, added, “This recent leasing momentum demonstrates the success of our strategy to transform this mid-century office tower into a fully-modernized and amenity-filled destination of choice for San Francisco’s premier companies. We are pleased to welcome Affirm to 650 California’s roster of prestigious tenants and look forward to working with them to develop a new home for their operational team.”
“After more than three years of exponential growth and counting, we are excited to call 650 California home for many years to come. It is located in a safe and vibrant neighborhood, easily accessible to public transit and has great amenities for our team such as a gym, rooftop, and the best unobstructed views of San Francisco and the bay,” said Chris Tobin, SVP of People and Places at Affirm.
The 33-story Financial District tower has been a landmark on the San Francisco skyline since its construction in 1964. Thanks to a major renovation and remodeling project that was completed in 2013, the building’s unique mid-century architecture is now paired with a clean, modern interior design and a luxury amenities program that has made 650 California appealing to a broad spectrum of office tenants. 650 California was recently named by Architectural Digest as the #2 Breathtaking Office View in a ranking of the top office buildings in the world.
Columbia undertook an additional series of renovations over the past two years, including high-end upgrades of the main lobby and construction of a new café and tenant lounge to foster a more collaborative work environment. Also, a new luxury onsite concierge service is now available exclusively to tenants, along with state-of-the-art fitness and conference centers. The highly-amenitized tower continues to offer specialty transportation features as well, including onsite valet parking, secure bike parking, EV and Scoot-E-Bike® charging stations, and immediate Zipcar® access.
About Columbia Property Trust
Columbia Property Trust (NYSE: CXP) owns and operates Class-A office buildings primarily in high-barrier-to-entry, primary markets. Our portfolio includes 16 office properties containing eight million square feet, concentrated in New York, San Francisco, and Washington, D.C. Columbia carries an investment-grade rating from both Moody’s and Standard & Poor’s. For more information, please visit www.columbia.reit.
Certain statements contained in this press release other than historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such statements include, in particular, statements about our plans, strategies, anticipated dividends, and prospects and are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We make no representations or warranties (express or implied) about the accuracy of any such forward-looking statements contained in this press release, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Any such forward-looking statements are subject to risks, uncertainties, and other factors and are based on a number of assumptions involving judgments with respect to, among other things, future economic, competitive, and market conditions, all of which are difficult or impossible to predict accurately. To the extent that our assumptions differ from actual conditions, our ability to accurately anticipate results expressed in such forward-looking statements, including our ability to generate positive cash flow from operations, make distributions to stockholders, and maintain the value of our real estate properties, may be significantly hindered. See Item 1A in the Company's most recently filed Annual Report on Form 10-K for the year ended December 31, 2016, for a discussion of some of the risks and uncertainties that could cause actual results to differ materially from those presented in our forward-looking statements. The risk factors described in our Annual Report are not the only ones we face, but do represent those risks and uncertainties that we believe are material to us. Additional risks and uncertainties not currently known to us or that we currently deem immaterial may also harm our business.