Columbia Property Announces Two Acquisitions Totaling $588 Mln

(RTTNews) - Columbia Property Trust, Inc. (CXP) said it has expanded its holdings in Manhattan and entered Boston's urban core through two acquisitions totaling $588 million.

Columbia acquired a two-property portfolio from Spear Street Capital in an off-market transaction for a total purchase price of $436 million, which included 315 Park Avenue South, a newly-renovated, 341,330-square-foot, historic Class-A office building in Manhattan's Gramercy Park submarket.

Additionally, the portfolio included 1881 Campus Commons Drive, a 244,565-square-foot, Class-A office building in the Washington, D.C., submarket of Reston, Virginia.

Separately, Columbia acquired the 274,218-square-foot, Class-A office building at 116 Huntington Avenue in Boston's Back Bay district from Broadway Partners for $152 million, inclusive of capital credits.

These acquisitions were funded with a $300 million bridge loan, a $140 million draw under Columbia's unsecured credit facility, and $148 million of cash on hand.

First-year projected net operating income is expected to be a combined $17 million for 315 Park Avenue South and 1881 Campus Commons Drive and $5.5 million for 116 Huntington Avenue.

Current occupancy at 315 Park Avenue South is 95 percent, at 116 Huntington Avenue it is 78 percent, and at 1881 Campus Commons Drive it is 78 percent.