WASHINGTON, Jan. 6 /PRNewswire-FirstCall/ -- CarrAmerica Realty
Corporation (NYSE: CRE) announced today that it has acquired from Casey Family
Programs the Casey Family Building and adjacent land parcels in the South Lake
Union submarket of Seattle, Washington.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990820/CRELOGO )
CarrAmerica paid approximately $52.0 million for the 77,759 square foot
office building and the adjacent land parcels that are expected to support the
development of approximately 600,000 additional square feet comprised of
office and retail components. $22.0 million of the total cost was for the
Casey Family Building, which is expected to provide a year one GAAP return of
7.58%. When the site is fully developed, which we expect to take three to
five years, the stabilized return on the development portion of the
acquisition is expected to be 100 to 200 basis points higher.
CarrAmerica Managing Director for Seattle, Clete Casper, commented, "We're
very pleased to enter into this long-term relationship with Casey Family
Programs and to have the opportunity to create a dynamic mixed-use development
in this strategic corner of the South Lake Union urban village." Mr. Casper
added, "We believe this site represents a unique opportunity to complete this
section of the Westlake corridor, and we look forward to working with the
South Lake Union community to build an exceptional new project located in the
center of this burgeoning submarket."
"We are pleased with the sale agreement between Casey Family Programs and
CarrAmerica," said William Bell, president and CEO of Casey Family Programs.
"This agreement allows for Casey Family Programs' national headquarters to
continue to be based in this building. It also furthers our capacity to
devote our resources towards our core mission of providing, improving, and
ultimately preventing the need for foster care."
Casey Family Programs will continue to remain the major tenant of the
building, and will lease the building for the next 10 years, with one five-
year option.
Completed in 1981, the five-story, Class A building is Casey Family
Programs' headquarters. Located at 1300 Dexter Avenue, the property also
includes two levels of covered parking. This highly-visible property is just
steps from Lake Union and offers outstanding views of the lake and surrounding
area. The neighborhood has undergone dramatic changes in the last five years
as a result of development activity including retail, residential, office and
research & development projects.
South Lake Union is a submarket of downtown Seattle and is situated at the
southern tip of Lake Union. This submarket is a hub for research institutions
due to its proximity to the University of Washington's School of Medicine, the
Fred Hutchinson Cancer Research Center and the Seattle Biotechnology Research
Institute. Additionally, other tenants committed to this submarket include
AttachmateWRQ, Group Health Insurance, NBBJ Architects, Merck and
ZymoGenetics.
In the Seattle area, CarrAmerica now owns 38 office and R&D buildings
containing over 2.0 million square feet.
Casey Family Programs is the largest national foundation whose sole
mission is to provide and improve -- and ultimately prevent the need for --
foster care. Established by United Parcel Service founder Jim Casey, the
Seattle-based national operating foundation has served children, youth, and
families in the child welfare system since 1966. For additional information
on Casey Family Programs, please visit their web site at http://www.casey.org.
CarrAmerica owns, develops and operates office properties in 12 markets
throughout the United States. The company has become one of America's leading
office companies by meeting the needs of its customers with superior service,
a large portfolio of quality office properties and extraordinary development
capabilities. Currently, CarrAmerica and its affiliates own, directly or
through joint ventures, interests in a portfolio of 294 operating office
properties, totaling approximately 27 million square feet. CarrAmerica's
markets include Austin, Chicago, Dallas, Denver, Los Angeles, Orange County,
Portland, Salt Lake City, San Diego, San Francisco Bay Area, Seattle and
metropolitan Washington, D.C. For additional information on CarrAmerica,
including space availability, visit our web site at
http://www.carramerica.com.
Estimates of Diluted FFO and earnings per share and certain other
statements in this release, including management's expectations about, among
other things, operating performance and financial conditions, may constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance, dividends, achievements or
transactions of the company and its affiliates or industry results to be
materially different from any future results, performance, achievements or
transactions expressed or implied by such forward-looking statements. Such
factors include, among others, the following: national and local economic,
business and real estate conditions that will, among other things, affect
demand for office space, the extent, strength and duration of any economic
recovery, including the effect on demand for office space and the creation of
new office development, availability and creditworthiness of tenants, the
level of lease rents, and the availability of financing for both tenants and
us; adverse changes in real estate markets, including, among other things, the
extent of tenant bankruptcies, financial difficulties and defaults, the extent
of future demand for office space in our core markets and barriers to entry
into markets which we may seek to enter in the future, the extent of the
decreases in rental rates, our ability to identify and consummate attractive
acquisitions on favorable terms, our ability to consummate any planned
dispositions in a timely manner and on acceptable terms, our ability to
successfully reinvest the proceeds from dispositions in other properties or
markets with improved returns, our ability to complete development projects on
time and within budget and our ability to stabilize such projects, and changes
in operating costs, including real estate taxes, utilities, insurance and
security costs; actions, strategies and performance of affiliates that we may
not control or companies in which we have made investments; ability to obtain
insurance at a reasonable cost; ability to maintain our status as a REIT for
federal and state income tax purposes; ability to raise capital; effect of any
terrorist activity or other heightened geopolitical crisis; governmental
actions and initiatives; and environmental/safety requirements. For a further
discussion of these and other factors that could impact the company's future
results, performance, achievements or transactions, see the documents filed by
the company from time to time with the Securities and Exchange Commission, and
in particular the section titled, "The Company -- Risk Factors" in the
company's Annual Report or Form 10-K.
SOURCE CarrAmerica Realty Corporation
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