DALLAS--(BUSINESS WIRE)--TIER REIT, Inc. (NYSE: TIER) announced today that it has acquired 5851 Legacy Circle, a Class A office tower with approximately 319,000 square feet that is located in the amenity-rich Legacy Town Center area of Plano, Texas. Built in 2012, the 12-story office building was acquired by TIER for $123.3 million, which includes the assumption of a $66 million mortgage loan. The building is 100% master leased to Encana Corp. and over 88% subleased to a variety of companies, including LegacyTexas Bank, U.S. Renal Care and Aimbridge Hospitality. The property is contiguous to two land parcels that the Company acquired in 2015 that can accommodate two additional office towers with an aggregate of 570,000 square feet. The project is being rebranded collectively as Legacy District.
“This acquisition complements our existing development parcels and enhances our vision for Legacy District, given its strategic location in the heart of the vibrant live-work-play Legacy submarket,” stated Scott Fordham, President & Chief Executive Officer of TIER REIT. “Further, it plants our flag prominently near the exciting new corporate campuses of Toyota, JP Morgan, Liberty Mutual and FedEx Office, which combined should bring over 15,000 new office workers to the submarket.”
TIER REIT also announced the sale of the Company’s Louisville portfolio, which includes the Company’s five remaining Louisville properties totaling approximately 678,000 square feet, for $71.5 million.
“Our exit from the Louisville market is another important milestone for TIER REIT,” stated Mr. Fordham, “and our reallocation of capital from Louisville and into Legacy District is another example of our strategic recycling efforts.”
About TIER REIT, Inc.
TIER REIT, Inc. is a publicly traded (NYSE:TIER), self-managed, Dallas-based real estate investment trust focused on owning quality, well-managed commercial office properties in dynamic markets throughout the U.S. TIER REIT’s vision is to be the premier owner and operator of best-in-class office properties in TIER1 submarkets, which are primarily higher density and amenity-rich locations within select, high-growth metropolitan areas that offer a walkable experience to various amenities. Our mission is to provide unparalleled, TIER ONE Property Services to our tenants and outsized total return through stock price appreciation and dividend growth to our stockholders.
For additional information regarding TIER REIT, please visit www.tierreit.com or call 972.483.2400.
Certain statements made in this press release that are not based on historical information are forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This press release contains express or implied forward-looking statements relating to development opportunities for which no assurance can be provided. TIER REIT undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances, or otherwise. For additional disclosure regarding these and other risks faced by the Company, see the disclosure contained in our public filings with the Securities and Exchange Commission, including, without limitation, our most recent Annual Report on Form 10-K.