ATLANTA & DALLAS & PHOENIX--(BUSINESS WIRE)--Columbia Property Trust, Inc. (NYSE: CXP) today announced that it has exited the Dallas and Phoenix markets with the recent sales of two office properties: CVS Health Tower, a Class-A office building located at 750 W. John Carpenter Freeway in the suburb of Irving, Texas, and SanTan Corporate Center, a Class-A office property located at 3100 and 3200 West Ray Road in Chandler, Arizona. Columbia will use the $109.5 million in total gross proceeds from both sales for reinvestment in its target markets.
CVS Health Tower comprises 315,000 square feet and is primarily leased to the building’s namesake, CVS Caremark, a major independent pharmacy benefit management provider, and technology leader IBM. Located in Irving’s popular Las Colinas District, the 12-story office building was built in 1999 and acquired by Columbia in 2006, at which time it was known as the Sterling Commerce building.
SanTan Corporate Center consists of two office buildings with a combined 267,000 square feet. Built in 2000 and 2003 and acquired by Columbia in 2006, both buildings are 100 percent leased. SanTan Corporate Center I is fully occupied by Toyota Financial Services, which recently signed a lease renewal to remain at the property through 2024. SanTan Corporate Center II is leased to multiple tenants, including Dialog Semiconductor, a UK-based manufacturer of semiconductor-based system solutions, and Isola USA, part of the global material sciences company Isola Group.
“We completed successful leasing programs at both these properties over the last several months, which, combined with their respective locations in solid metro submarkets, positioned each to attract high demand among potential buyers,” said Nelson Mills, president and CEO of Columbia Property Trust. “We felt the time was right to realize the value of these assets and exit both markets as we continue to sharpen our focus on a select group of CBD, high-barrier markets.”
With this sale, Columbia has successfully completed $660.5 million of dispositions in 2016, as part of its previously announced plan to sell roughly $700 million to $1 billion of non-core assets this year.
About Columbia Property Trust
Columbia Property Trust (NYSE: CXP) owns and operates Class-A office buildings in competitive, primarily CBD locations, and over half our investments are in high-barrier-to-entry, primary markets. Our portfolio includes 21 office properties containing nearly 11 million square feet and one hotel, concentrated in San Francisco, New York, and Washington, D.C. For more information about Columbia, which carries an investment-grade rating from both Moody’s and Standard & Poor’s, please visit 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, 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, 2015, 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.