Piedmont Office Realty Trust Announces Third Quarter Leasing and Capital Markets Activity
ATLANTA - October 21, 2015 - Piedmont Office Realty Trust, Inc. (the "Company" or "Piedmont") (NYSE:PDM) announced today that it signed leases totalling over 900,000 square feet, and completed four capital market transactions during the third quarter of 2015.
Significant highlights of leasing transactions greater than 20,000 square feet for the quarter included:
Chicago, IL - The Kraft Heinz Foods Company signed a 169,717 square foot, 12+year new lease through 2029 at Aon Center, located at 200 East Randolph Street in downtown Chicago, IL.
Also at Aon Center in Chicago, IL, existing tenant KPMG completed a 31,611 square foot, 11-year lease expansion. With this expansion, KPMG leases a total of 272,785 square feet through 2027.
Motorola Solutions, Inc. completed a 150,345 square foot, 12-year new lease through 2028 at Piedmont's 500 West Monroe Street property, also in downtown Chicago, IL.
Washington, D.C. - International Food Policy Research Institute (IFPRI) signed a 101,937 square foot, 12-year new lease through 2029 at 1201 Eye Street in Washington, D.C.
Atlanta, GA - GreenSky Trade Credit, LLC completed a 36,347 square foot, 6-year new lease through 2021 at Piedmont's Glenridge Highlands Two property, located at 5565 Glenridge Connector Drive in Atlanta, GA.
Los Angeles, CA. - NCH Management completed a 34,574 square foot, 6-year lease renewal and expansion through 2022 at Piedmont's Fairway Center II, located at 675 Placentia Avenue in Brea, CA.
Dallas, TX. - PlainsCapital Bank signed a 31,550 square foot, 5+year lease renewal through 2025 at Park Place on Turtle Creek, located at 2911 Turtle Creek Boulevard in Dallas, TX.
Nashville, TN. - In addition to the above leases, Comdata Inc. exercised a one-year extension for 201,237 square feet through May of 2017 at 5301 Maryland Way in Brentwood, TN. The exercise of this option was made in contemplation of a potential long-term lease renewal and in conjunction with a possible contraction of space.
"We are very pleased with our third quarter leasing results, particularly in the Chicago market where we signed two Fortune 500 headquarters' leases, which absorbed two previously vacant blocks of space," said C.A. "Bo" Reddic, IV, Executive Vice-President of Real Estate Operations for Piedmont. "We enthusiastically welcome such iconic tenants as The Kraft Heinz Foods Company and Motorola Solutions, Inc., while expanding our existing relationship with KPMG. Additionally, we are encouraged this quarter that we have already surpassed our year end 2015 leased goal of 90%," added Reddic.
Additionally, during the third quarter Piedmont continued to refine its portfolio of assets, completing three disposition transactions:
- Eastpoint I & II, located at 6085 & 6095 Parkland Boulevard in Mayfield Heights, OH, was sold to
FFIII OH Eastpoint, LLC (obo Founders Properties) for $18.5 million. The adjacent, multi-tenant office buildings were constructed in 2000, and total 170,705 square feet.
- 3750 Brookside Parkway, a 105,236 square foot, 2-story office building in Alpharetta, GA, was constructed in 2001 and purchased by Brookside Parkway Partners, LLC (OA Development) for just over $14 million.
- Chandler Forum, located at 1975 South Price Road in Chandler, AZ, was purchased by Chandler Forum Building, LLC (Tryperion Partners) for $33.9 million. The 149,863, 3-story office building was constructed in 2003 and is 100% leased to Americredit Financial Services.
Piedmont also acquired 80 Central Street, a Class-A building located in Boxborough, MA for $13.5 million. The 149,661 square foot, multi-tenant property is 93% leased and is located adjacent to 90 Central Street, an asset owned by Piedmont.
"We had a very active third quarter from a transactional perspective," said Raymond L. Owens, Executive Vice President, Capital Markets for Piedmont. "The completed activity during the quarter -- the acquisition of 80 Central, located in one of our strategic operating markets, and adjacent to one of our pre-existing assets, as well as the sale of three non-core assets -- clearly demonstrates our capital markets strategy and ongoing commitment to portfolio refinement," added Owens.
Piedmont Office Realty Trust, Inc. (NYSE: PDM) is an owner, manager, developer, and operator of high-quality, Class A office properties located in select sub-markets of major U.S. cities. Its geographically-diversified, over $6 billion portfolio is comprised of 21 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 www.piedmontreit.com.
Contact: Kerry Hughes
Company: Piedmont Office Realty Trust
Phone: 1 770 418 8678