Franklin Street Properties Announces Closing of its Common Stock Offering and Full Exercise of Optio

Franklin Street Properties Announces Closing of its Common Stock Offering and Full Exercise of Option to Purchase Additional Shares

WAKEFIELD, Mass.--(BUSINESS WIRE)-- Franklin Street Properties Corp. (the "Company" or "FSP") (NYSE MKT: FSP) today announced that it has closed its previously announced underwritten public offering of 17,250,000 shares of its common stock, including 2,250,000 shares purchased by the underwriters pursuant to the exercise in full of the underwriters' option to purchase additional shares. The Company received approximately $231.3 million in net proceeds from the offering after deducting the underwriting discount and other estimated offering expenses.

The Company intends to use the net proceeds of the offering to fund a portion of its acquisition of 999 Peachtree, a Class-A office building in Atlanta, GA, and 1999 Broadway, a Class-A office building in Denver, CO. These properties are currently under contract and the acquisitions are expected to close on or before July 1. Pending closing of the acquisitions, the Company intends to use the net proceeds from this offering to repay amounts outstanding under its revolving credit facility and/or for general corporate purposes. In the event that either or both acquisitions are not completed, the Company intends to use the net proceeds of this offering to repay amounts outstanding from time to time under its revolving credit facility and/or for general corporate purposes, including funding future acquisitions and investments.

BofA Merrill Lynch, Baird and BMO Capital Markets acted as joint book-running managers for the offering. PNC Capital Markets LLC, RBS, Capital One Southcoast, Piper Jaffray, TD Securities and BB&T Capital Markets acted as co-managers for the offering.

This offering was made pursuant to an effective shelf registration statement and related prospectus and prospectus supplement filed by the Company with the Securities and Exchange Commission. Copies of the prospectus and prospectus supplement for this offering can be obtained by contacting the underwriters as follows: BofA Merrill Lynch, 222 Broadway, New York, NY 10038, Attn: Prospectus Department or email at dq.prospectus_requests@baml.com; Robert W. Baird & Co. Incorporated, 777 E. Wisconsin Avenue, Milwaukee, WI 53202, Attn: Syndicate Department or by email at syndicate@rwbaird.com; or BMO Capital Markets, 3 Times Square, 28th Floor, New York, NY 10036, Attn: Syndicate Desk or by telephone at (800) 414-3627. You may also obtain these documents by visiting the EDGAR database on the SEC's web site at www.sec.gov.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Franklin Street Properties

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on achieving current income and long-term growth through investments in commercial properties. FSP's property portfolio consists of office properties. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.

Forward-Looking Statements

Certain matters discussed in this press release are forward-looking statements within the meaning of the federal securities laws and are subject to uncertainties and risk and actual results may differ materially from projections, including matters related to the commenced public offering and intended use of proceeds. Readers should carefully review the Company's financial statements and notes thereto, as well as the risk factors described in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2012 and other documents the Company files from time to time with the Securities and Exchange Commission. Such forward-looking statements are based on current expectations and speak as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

Franklin Street Properties
John Demeritt, 877-686-9496

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS:

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