Piedmont Pointe II in Bethesda, MD. As part of its continuous strategy to focus on owning Class An office residential or commercial properties in select submarkets primarily within 8 significant Eastern U.S. office markets, Piedmont Workplace Real Estate Trust (NYSE: PDM) said it is in the process of offering 14 office buildings across the nation to two different buyers for a total minimum gross prices of roughly $425.9 million.
The properties total 2.6 million square feet and have a combined tenancy of 76%.
The price might increase an additional $5 million to $10 million if specific leasing targets are fulfilled within six months after the closing date, which Piedmont anticipates will remain in January 2018.
The REIT stated it expects to tape-record a gain of approximately $40 million in conjunction with closing one of the deals and a non-cash problems loss of roughly $48 million on the other transaction, prior to considering any extra cash made on meeting the leasing targets. Both agreements are subject to traditional closing conditions.
The sales will see the Atlanta-based REIT exit four markets: Detroit, Nashville, South Florida and Phoenix. The REIT owns seven office buildings in those markets.
Piedmont is also cutting the variety of submarkets where it owns property within several of its core markets, consisting of in Atlanta, Boston and Washington DC’s Maryland suburban areas.
It is also decreasing its exposure in Chicago where three of the structures being offered lie and where it owns 11 properties in total. The list of office complex associated with the pending offers appears below.
” As we’ve indicated before, we believe that being a net seller today is the right thing to do at this moment in the cycle,” Robert Bowers, CFO Piedmont told experts this month.
During the third quarter, the REIT finished two sales: Two Self-reliance Square at 300 E St. SW in Washington D.C for $360 million, or $593 per square foot; and 8560 Upland Drive, an 149,000 square foot office/warehouse building, which was Piedmont’s last possession in Denver, offered $17.6 million.
Desert Canyon 300, Phoenix
2001 NW 64th St. Ft. Lauderdale
5601 Hiatus Roadway, Tamarac
Suwanee Entrance One, Suwanee
Windy Point I and II, Schaumburg
2300 Cabot Drive, Lisle
Piedmont Pointe I & & II, Bethesda
1200 Crown Colony Drive, Quincy
Auburn Hills Corporate Center, Auburn Hills
1075 West Entrance Drive, Auburn Hills
2120 West End Ave., Nashville
5301 Maryland Method, Brentwood