NEWTON, Mass.--(BUSINESS WIRE)--Office Properties Income Trust (Nasdaq: OPI) today announced that it has completed the sale of 500 First Street NW in Washington, D.C. for a sale price of $70 million, excluding closing costs. The 129,035 square foot property is located two blocks from Union Station and is expected to become vacant during the second quarter of 2019.
“We had planned to substantially renovate and reposition 500 First Street after the Bureau of Prisons vacated the building as early as the end of April, but at a sales price of more than $540 per square foot for a to be vacant building, we decided to be opportunistic and focus our capital elsewhere,” said David Blackman, OPI’s President and Chief Executive Officer. “This sale helps advance our deleveraging efforts, having now completed $268.5 million of asset sales so far in 2019.”
Proceeds from today’s sale of properties will be used to repay a portion of OPI’s unsecured term loans.
Office Properties Income Trust is a real estate investment trust, or REIT, which primarily owns properties located throughout the United States and leased to single tenants and those with high credit quality characteristics like government entities. OPI is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, MA.
WARNING REGARDING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER OPI USES WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”, “ESTIMATE”, “WILL”, “MAY” AND NEGATIVES OR DERIVATIVES OF THESE OR SIMILAR EXPRESSIONS, OPI IS MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON OPI’S PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY OPI’S FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:
- THIS PRESS RELEASE STATES THAT PROCEEDS FROM TODAY’S SALE OF PROPERTIES WILL BE USED TO REPAY A PORTION OF OPI’S UNSECURED TERM LOANS. THIS MAY IMPLY THAT OPI WILL MAINTAIN REDUCED DEBT LEVELS. HOWEVER, OPI MAY INCUR ADDITIONAL DEBT IN THE FUTURE.
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A Maryland Real Estate Investment Trust with transferable shares of
beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.