CHICAGO--(BUSINESS WIRE)--Equity Commonwealth (NYSE: EQC) announced today the company is under contract to sell two properties totaling 2.4 million square feet for $670 million.
In January, the company entered into a contract to sell its 98.4% leased, 1,571,000 square foot property at 600 West Chicago Avenue in Chicago, Illinois, for a gross sale price of $510 million. Proceeds after credits for capital costs, contractual lease costs, and rent abatements are expected to be approximately $487 million.
In December, the company entered into a contract to sell its 84% leased, 826,000 square foot property at 1600 Market Street in Philadelphia, Pennsylvania, for a gross sale price of $160 million. Proceeds after credits for capital costs, contractual lease costs, and rent abatements are expected to be approximately $156 million.
Pursuant to the purchase agreements, including purchaser extension rights, the closings are scheduled to occur on or before March 23, 2018 and February 28, 2018, respectively. These transactions are subject to customary closing extensions and conditions, and there is no certainty that these transactions will close.
During the quarter ended December 31, 2017, the company sold $106.9 million of assets, including:
- A two-property, 15-building, 1,182,000 square foot, 75.6% leased, office portfolio in Moon Township and Pittsburgh, Pennsylvania, for a gross sale price of $71 million.
- 789 East Eisenhower Parkway, one of two adjacent office buildings in Ann Arbor, Michigan. The 100% leased, 131,000 square foot building was sold for a gross sale price of $24.9 million.
- 33 Stiles Lane, a 25.1% leased, 175,000 square foot industrial property in North Haven, Connecticut, for a gross sale price of $10.5 million. In connection with the sale, the company repaid the $2.0 million mortgage loan secured by the property, plus $0.2 million of prepayment costs.
- A land parcel in Aurora, Illinois and mineral rights in Ft. Worth, Texas for a combined gross sale price of $0.5 million.
About Equity Commonwealth
Equity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties throughout the United States. As of December 31, 2017, EQC’s same-property portfolio comprised 16 properties and 8.7 million square feet.
Regulation FD Disclosures
We intend to use any of the following to comply with our disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or our website. We routinely post important information on our website at www.eqcre.com, including information that may be deemed to be material. We encourage investors and others interested in the company to monitor these distribution channels for material disclosures.
Some of the statements contained in this press release constitute forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding consummating asset sales. Any forward-looking statements contained in this press release are intended to be made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions.
The forward-looking statements contained in this press release reflect the company’s current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause the company’s actual results to differ significantly from those expressed in any forward-looking statement. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all).
While forward-looking statements reflect the company’s good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company’s most recent Annual Report on Form 10-K and in the company’s Quarterly Reports on Form 10-Q for subsequent quarters.