TORONTO--(BUSINESS WIRE)--Slate Office REIT (TSX: SOT.UN) (the "REIT") announced today that it has agreed to acquire Cypress Financial Center in Fort Lauderdale, Florida for US$45.5 million, or US$226 per square foot and an estimated going-in cap rate of 7.4%.
Cypress Financial Center Acquisition Highlights
- 201,305 square foot, Class A office building in Cypress Creek, one of the largest submarkets in Fort Lauderdale, Florida.
- Cypress Financial Center benefits from Florida’s highly attractive demographics, including strong population growth, an attractive cost of living, a large and well-educated work force and a favourable tax environment.
- Property is currently well-leased at 92.5% occupancy with a diversified roster of quality tenants and a weighted average lease term of 8.1 years.
- Strategically located directly off of the Interstate 95 Highway and adjacent to the Cypress Creek Tri-Rail Station, providing excellent convenience and accessibility for tenants.
- Purchase price of US$45.5 million (US$226 per square foot) represents an estimated 50% discount to replacement cost.
- Redeploying capital from the previously announced sale of 4211 Yonge Street at a 3.7% cap rate for $63.0 million into Cypress Financial Center at a 7.4% cap rate for US$45.5 million.
- In-place rents are 14.5% below market, providing additional upside upon lease maturities.
The acquisition of Cypress Financial Center is expected to be completed in the second quarter of 2020 and is being purchased using existing balance sheet liquidity and attractive financing. The transaction remains subject to customary closing conditions.
About Slate Office REIT (TSX: SOT.UN)
Slate Office REIT is an open-ended real estate investment trust. The REIT's portfolio comprises 36 strategic and well positioned real estate assets located primarily across Canada's major population centres and includes two downtown assets in Chicago, Illinois. The REIT is focused on maximizing value through internal organic rental and occupancy growth and strategic acquisitions. Visit slateofficereit.com to learn more.
About Slate Asset Management
Slate Asset Management is a leading real estate focused alternative investment platform with over $6.5 billion in assets under management. Slate is a value-oriented manager and a significant sponsor of all of its private and publicly traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm's careful and selective investment approach creates long-term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a demonstrated ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.