WASHINGTON, Sept. 29 /PRNewswire-FirstCall/ -- CarrAmerica Realty
Corporation (NYSE: CRE) today announced that it has acquired five buildings in
Corporate Technology Centre in North San Jose, California. CarrAmerica paid
$43.8 million ($132.03 per square foot) for the office/R&D properties, which
total 331,950 square feet. CarrAmerica will also assume management and
leasing of the buildings.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990820/CRELOGO )
CarrAmerica Managing Director for Northern California, Christopher
Peatross, commented, "We're very pleased to have the opportunity to acquire
these Class A buildings for a price we believe to be at a significant discount
to replacement cost." Mr. Peatross added, "This acquisition increases
CarrAmerica's holdings in this campus to seven of the eight buildings
comprising Corporate Technology Centre, for a total of 508,230 square feet."
CarrAmerica purchased two of the buildings in the campus -- 250 and 300 Holger
Way, which are both 100% occupied -- in July of this year.
Currently 42% leased, the five-building acquisition in Corporate
Technology Centre is expected to provide a year one GAAP return of 3.7% and a
stabilized GAAP return of approximately 11%.
CarrAmerica Senior Vice President, John Moe, commented, "Corporate
Technology Centre offers top-tier buildings in Silicon Valley with exceptional
access and first-class improvements. The business park provides us with an
opportunity to capitalize on the current 'flight to quality' trend in Silicon
Valley of tenants upgrading their space to take advantage of the favorable
economics that exist today."
Completed in 1999, the buildings are located in the "Golden Triangle," the
core area of Silicon Valley bounded by Highways 237, 101 and 880. The campus
is easily accessed off Highway 237 from either the Zanker Road or North First
Street exits and has freeway visibility from Highway 237.
Following is a list of the address, square footage and number of stories
for each of the buildings comprising this new acquisition:
ADDRESS SF STORIES
100 Headquarters Drive 46,070 2
350 Holger Way 96,710 3
400 Holger Way 76,410 2
450 Holger Way 93,210 3
475 Holger Way 19,550 1
In the San Francisco Bay Area, CarrAmerica now owns, directly or through
joint ventures, interests in 89 office and R&D buildings containing
approximately 6.3 million square feet.
CarrAmerica owns, develops and operates office properties in 13 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 296 operating office properties. CarrAmerica's markets include
Atlanta, 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 http://www.carramerica.com.
Certain statements in this release 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 properties, possible
charges or payments resulting from our guarantee of certain leases of HQ
Global Workplaces, Inc., the ability of the general economy to recover timely
from the current economic downturn, availability and creditworthiness of
tenants, the level of lease rents and the availability of financing for both
tenants and the Company, adverse changes in the real estate markets including,
among other things, competition with other companies, risks of real estate
acquisition and development (including the failure of pending acquisitions to
close and pending developments to be completed on time and within budget or
the failure of any property acquired or developed to perform as expected),
actions, strategies and performance of affiliates that the Company may not
control or companies in which the Company has made investments, our ability to
maintain our status as a REIT for federal income tax purposes, 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 on Form 10-K.
SOURCE CarrAmerica Realty Corporation
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Related links:
http://www.carramerica.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19990820/CRELOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 212-782-2840
CONTACT:
Maureen Wheeler of CarrAmerica Realty
Corporation, +1-202-729-1756, maureen.wheeler@carramerica.com
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