SAN FRANCISCO & NEW YORK--(BUSINESS WIRE)--Columbia Property Trust, Inc. (NYSE: CXP) and Allianz Real Estate today announced that they have completed the formation of a joint venture to recapitalize 221 Main Street in San Francisco. Allianz contributed cash of $180 million for a 45% ownership interest in the joint venture, which values 221 Main Street at $400 million. Consistent with most of the other ventures between Columbia and Allianz, Columbia will retain a 55% ownership stake and function as general partner for the venture. Columbia will also continue to oversee the day-to-day operations of the asset.
221 Main Street is a 381,000-square-foot, LEED Platinum and Energy Star-certified office building in San Francisco’s South Financial District. Acquired by Columbia in 2014, the property features Bay views and abundant outdoor space. The building is fully leased, primarily to tech tenants such as DocuSign and Prosper Marketplace.
With this transaction, 221 Main Street has become the fifth office asset owned by joint ventures between Columbia and Allianz Real Estate, which now have a collective gross asset value of approximately $2.3 billion. The four other properties jointly owned by Columbia and Allianz are University Circle and 333 Market Street in San Francisco, 114 Fifth Avenue in New York, and 1800 M Street in Washington, D.C. Columbia and Allianz have also both made investments in the Terminal Warehouse joint venture in New York, together with other partners.
“We are pleased to once again expand our relationship with Allianz Real Estate, through a transaction that reflects our shared confidence in both the value of 221 Main and the attraction of San Francisco’s office market for long term investors,” said Nelson Mills, Columbia’s Chief Executive Officer. “We look forward to investing the proceeds in new opportunities to expand our footprint of high quality assets in our core markets.”
About Columbia Property Trust
Columbia Property Trust (NYSE: CXP) creates value through owning, operating, and developing Class-A office buildings in New York, San Francisco, Washington D.C., and Boston. The Columbia team is deeply experienced in transactions, asset management and repositioning, leasing, development, and property management. It employs these competencies to grow value across its high-quality, well-leased portfolio of 15 properties that contain approximately seven million rentable square feet, as well as four properties under development, and also has approximately eight million square feet under management for private investors and third parties. Columbia has investment-grade ratings from both Moody’s and S&P Global Ratings. For more information, please visit www.columbia.reit.
Certain statements in this press release, including statements regarding future business operations, may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties. Our actual results may differ materially from projections. 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, see Columbia Property Trust’s filings with the Securities and Exchange Commission, including the most recent annual report on Form 10-K. We caution readers not to place undue reliance on these forward-looking statements, which are based on current expectations and speak as of the date of such statements. We make no representations or warranties (express or implied) about the accuracy of, nor do we intend to publicly update or revise any such forward-looking statements contained herein, whether as a result of new information, future events, or otherwise.