Piedmont Office Realty Trust Announces First Quarter Leasing and Capital Markets Activity
ATLANTA - April 24, 2013 - Piedmont Office Realty Trust (NYSE: PDM) announced today that it secured approximately 500,000 square feet of total leasing and completed three capital markets transactions in the first quarter of 2013.
Significant leasing highlights for the quarter included:
Denver, CO - FedEx Corporate Services, Inc. completed a 155,808 square foot, 12-year lease renewal through 2024 at 350 Spectrum Loop in Colorado Springs, CO.
Detroit, MI -Miller Canfield, Paddock and Stone, P.L.C., signed a 69,974 square foot, 11- year early lease renewal through 2026 at 150 West Jefferson in Detroit, MI.
Washington, DC - Lockheed Martin Corporation completed a 52,227 square foot, 7+ year lease renewal through 2020 at 400 Virginia Avenue in Washington, DC.
Orange County, CA - Morgan Stanley Smith Barney Financing, LLC, signed a 22,470 square foot 10+ year new lease expansion and further extended its original existing 22,470 square foot lease at 1901 Main Street in Irvine, CA. The lease now totals 44,940 square feet and expires in 2024.
New York Metro, NY - GE Capital Retail Bank, a division of General Electric Corporation, completed a 17,684 square foot, 5+ year new lease through 2018 at 200 Bridgewater Crossing in Bridgewater, NJ.
"With the number of lease expirations beginning to subside, we are pleased to have maintained a steady pace of leasing for the quarter -- particularly in the area of renewal activity with many of our creditworthy corporate tenants such as FedEx, Lockheed Martin and Morgan Stanley Smith Barney," said C.A. "Bo" Reddic, IV, Executive Vice-President of Real Estate Operations for Piedmont. "We feel fortunate for the opportunity to continue these long-established relationships with high caliber tenants and believe it is largely a testament to the quality of our properties and our proven reputation as a financially stable owner and superior property manager," added Reddic.
Additionally, Piedmont completed the following capital markets transactions in the first quarter:
Washington, DC - Completed the purchase of Arlington Gateway, a twelve-story, Class-A office property located at 901 North Glebe Road in Arlington, VA. Piedmont acquired the 333,948 square foot office building from Arlington Gateway Investor, LLC for approximately $175.6 million, or $526 per square foot. Constructed in 2005, this LEED Gold and Energy Star certified trophy property is located in the desirable Rosslyn-Ballston Corridor and is 99% leased exclusively to non-government tenants.
Boston, MA - Acquired 5 & 15 Wayside Road, a Class-A project located in Burlington, MA for approximately $69.3 million, or $255 per square foot. The 271,434 square foot office complex is comprised of two interconnected, four-story and five-story office buildings constructed in 1999 and 2001. The complex is currently 95% leased to three tenants.
"These acquisitions demonstrate Piedmont's goal of continuing to increase our presence in and deploy capital into our identified national concentration markets, while also adhering to our operating strategy focusing on larger, creditworthy corporate end users," said Raymond L. Owens, Executive Vice-President, Capital Markets for Piedmont. "Both transactions will provide us with stable income from two high quality office projects, while building upon our critical mass in two submarkets that we feel have long-term growth potential," Owens concluded.
Piedmont also completed the sale of 1111 Durham Avenue in South Plainfield, NJ to M&M Realty Partners at South Plainfield, LLC. After assessing the aged building (constructed in 1975) and leasing prospects, Piedmont sold the property for $4.0 million, determining that the price appropriately represented the land value of the asset.
About Piedmont: Piedmont Office Realty Trust, Inc. (NYSE: PDM) is a fully-integrated and self-managed real estate investment trust (REIT) specializing in high-quality, Class A office properties located primarily in the ten largest U.S. office markets, including Chicago, Washington, D.C., New York, Boston, Los Angeles and Dallas. As of March 31, 2013, Piedmont's 75 wholly-owned office buildings were comprised of nearly 21 million rentable square feet. The Company is headquartered in Atlanta, GA, with local management offices in each of its major markets. Piedmont is investment-grade rated by Standard & Poor's and Moody's and has maintained a low-leverage strategy while acquiring and disposing of properties during its fourteen year operating history. For more information, see www.piedmontreit.com.
Contact: Kerry Hughes
Company: Piedmont Office Realty Trust
Phone: 1 770 418 8678