Atlanta, GA, Aug. 26, 2019 (GLOBE NEWSWIRE) -- Piedmont Office Realty Trust, Inc. (NYSE: PDM) announced today that it has completed the purchase of Galleria 400 and Galleria 600, two office towers totaling approximately 860,000 square feet and an adjacent 10.2 acre land parcel entitled for one million square feet of additional development for a total of $231.2 million. The acquisition is located within The Galleria, a master-planned, mixed-use development in northwest Atlanta with prominent visibility from I-75 and I-285. Since 2015, Piedmont has assembled 2.1 million square feet of office space across five buildings along with three development sites, consolidating the project’s multi-tenant office buildings and 6,000-space structured parking facilities under a single owner for the first time. Piedmont’s total investment in The Galleria is just under $500 million, which represents a significant discount to estimated replacement cost.
The Galleria offers unique direct access to The Battery – the mixed-use center which includes SunTrust Park, home of the Atlanta Braves, and the 4,000-seat Coca-Cola Roxy Theater, as well as over 500,000 square feet of dining and entertainment options. The Galleria includes office, multifamily and retail, along with a four-star hotel, the Cobb-Galleria Convention Center and the Cobb Energy Performing Arts Centre.
Brent Smith, President and Chief Executive Officer for Piedmont stated, “We are extremely excited to add Galleria 400 and 600, along with one of the best developable land sites in the city, to our unparalleled position within the growing northwest Atlanta submarket. This acquisition exemplifies our strategy of aggregating high-quality, amenitized assets in dense, walkable environments which give us the ability to create unique community-building experiences for our tenants. When we acquired Galleria 300 in 2015, we boldly imagined the environment a single owner could create adjacent to the unique amenity set evolving in The Battery. Today, the first step of that vision becomes a reality and marks the beginning of Piedmont’s transformation of this prominent Atlanta mixed-use development. We look forward to partnering with Cobb County, Childress Klein and our other neighboring owners to further activate, reposition and energize The Galleria to deliver a vibrant, distinctive environment which helps our tenants attract and retain top-tier talent and benefits the surrounding community.”
For more information about the transaction, an investment overview presentation has been posted to the Investor Relations section of the Company’s website, piedmontreit.com, under “Strategic Capital Deployment – August 2019.”
About Piedmont Office Realty Trust
Piedmont Office Realty Trust, Inc. (NYSE: PDM) is an owner, manager, developer, redeveloper, and operator of high-quality, Class A office properties located primarily in select sub-markets within eight major Eastern U.S. office markets. Its geographically-diversified, almost $5 billion portfolio is currently comprised of nearly 18 million square feet. The Company is a fully-integrated, self-managed real estate investment trust (REIT) with local management offices in each of its major markets and is investment-grade rated by Standard & Poor’s (BBB) and Moody’s (Baa2). For more information, see piedmontreit.com.
Forward Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of the Company`s performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "believe," "continue" or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters.
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Source: Piedmont Office Realty Trust, Inc.