WAKEFIELD, Mass.--(BUSINESS WIRE)--Franklin Street Properties, Corp. (the “Company”, “FSP”, “our” or “we”) (NYSE MKT: FSP), a real estate investment trust (REIT), has acquired Two Ravinia Drive in Atlanta, Georgia. Two Ravinia Drive is a 17-story, Class “A”, approximately 442,130 square foot multi-tenant office tower with an attached parking garage located in the Central Perimeter Submarket of Atlanta, Georgia. Two Ravinia Drive is directly adjacent to the Company’s existing office tower, One Ravinia Drive. This acquisition increases FSP’s holdings in Atlanta to approximately 1.8 million square feet and should allow for greater scale and operating efficiencies between both Ravinia office towers.
The gross purchase price of Two Ravinia Drive was $78 million and the Company anticipates planned building capital investments (excluding leasing costs) of approximately $4.8 million to occur over the next three to four years. Two Ravinia Drive is currently 80.5% leased, with in-place rents that we believe average approximately 25% below today’s current market asking rates.
George Carter, President and Chief Executive Officer of FSP, stated, “We are excited to increase our office property ownership presence in Atlanta, one of our five core investment markets. Our growing presence in the Central Perimeter Submarket reflects our commitment to dense, amenity-rich, infill locations in high growth markets. Two Ravinia Drive and our already owned and adjacent One Ravinia Drive are located in a dynamic office environment that is within walking distance of MARTA’s Dunwoody rail and bus station, as well as an abundance of hospitality, dining, and retail choices, including the highly regarded Perimeter Mall.”
The Company funded the acquisition of Two Ravinia Drive with proceeds from non-core dispositions, and borrowings under its revolving credit facility. No debt was assumed in connection with this acquisition.
This press release, along with other news about FSP, is available on the Internet at www.franklinstreetproperties.com. We routinely post information that may be important to investors in the Investor Relations section of our website. We encourage investors to consult that section of our website regularly for important information about us and, if they are interested in automatically receiving news and information as soon as it is posted, to sign up for E-mail Alerts.
About Franklin Street Properties Corp.
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on investing in institutional-quality office properties in the U.S. FSP’s strategy is to invest in select urban infill and central business district (CBD) properties, with primary emphasis on our top five markets of Atlanta, Dallas, Denver, Houston, and Minneapolis. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. To learn more about FSP please visit our website at www.franklinstreetproperties.com.
Statements made in this press release that state FSP’s or management’s intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may also contain forward-looking statements based on current judgments and current knowledge of management, which are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Investors are cautioned that our forward-looking statements involve risks and uncertainty, including without limitation, economic conditions in the United States, disruptions in the debt markets, economic conditions in the markets in which we own properties, risks of a lessening of demand for the types of real estate owned by us, changes in government regulations and regulatory uncertainty, uncertainty about governmental fiscal policy, geopolitical events and expenditures that cannot be anticipated such as utility rate and usage increases, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments. See the “Risk Factors” set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2014, as the same may be updated from time to time in subsequent filings with the United States Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law.