WASHINGTON, Sept. 19 /PRNewswire-FirstCall/ -- CarrAmerica Realty
Corporation (NYSE: CRE) today announced that it has acquired Chancellor Park,
a two-building, 195,733 square-foot, Class A office project in San Diego,
California. CarrAmerica paid approximately $56.0 million for 4510 and 4520
Executive Drive, which are located in the University Town Center (UTC)
submarket. The project is expected to provide a year one GAAP return of 6.0%
and a stabilized GAAP return of approximately 7.2%.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990820/CRELOGO )
CarrAmerica Managing Director for Southern California, Malcolm O'Donnell,
commented, "We're very pleased to add this acquisition to our existing
portfolio in this market, increasing our San Diego portfolio to over 1.5
million square feet." Mr. O'Donnell added, "Chancellor Park is extremely
well-located within UTC, which is one of the best performing and most land
constrained submarkets in San Diego."
Completed in 1989, Chancellor Park is comprised of two, four-story
buildings and a three-story parking structure. The buildings are within
walking distance to numerous restaurants and amenities, including Westfield
UTC shopping mall, and are easily accessed via both I-805 and I-5. Tenants in
the building include BioCom, EMN8, and Reynolds & Reynolds.
The listing brokers in this transaction were Lynn La Chapelle and Bob
Prendergast of Burnham Real Estate Services.
In Southern California, CarrAmerica now owns, directly or through joint
ventures, interests in 60 office buildings containing over 4 million square
feet.
CarrAmerica owns, develops and operates office properties in 12 markets
throughout the United States. The company has become one of America's leading
office workplace companies by meeting the rapidly changing 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 298 operating office properties, totaling approximately 27.6
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 on acceptable terms, 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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