Cole Corporate Income Trust, Inc. Acquires $160 Million of Net-Leased Class A Office Properties in T
Cole Corporate Income Trust, Inc. Acquires $160 Million of Net-Leased Class A Office Properties in Texas and Massachusetts
Mission-Critical Facilities Are Leased Long-Term to Major Corporate Tenants
PHOENIX--(BUSINESS WIRE)-- Cole Real Estate Investments, Inc. (Cole or Cole Real Estate Investments), a diversified real estate company, announced the acquisition of three Class A office properties by Cole Corporate Income Trust, Inc. (CCIT) for $160.8 million. The properties, located in Texas and Massachusetts, include a multi-building Allstate corporate campus, the corporate headquarters for The Men's Wearhouse and a newly constructed office building housing a multi-specialty medical practice operated by Harvard Vanguard Medical Associates. CCIT invests primarily in strategic single-tenant, income-producing, necessity corporate properties leased to creditworthy tenants under long-term net leases. Cole Corporate Income Advisors, LLC, a subsidiary of Cole Real Estate Investments, serves as external advisor to CCIT.
"These high-quality assets exemplify CCIT's investment criteria," said Robert Micera, chief investment officer for office and industrial at Cole. "Strategic properties with creditworthy corporate tenants, under long-term net leases, are our primary target. These properties are well-located in major MSAs and are mission critical for the corporate tenants."
With these recent transactions, CCIT's real estate portfolio consists of 35 wholly-owned properties located in 17 states, totaling approximately 5.6 million square feet and with an aggregate purchase price of approximately $921.1 million. The overall weighted average credit rating of the rated tenants in the portfolio is A-, and the weighted average remaining lease term is nearly 11 years. More than 63% of CCIT's portfolio consists of tenants rated by Standard & Poor's, and of those tenants more than 88% are rated investment grade.
ALLSTATE INSURANCE CO. - Irving Campus - Dallas/Ft. Worth MSA
CCIT acquired a multi-building corporate campus leased to Allstate Insurance Co. (S&P "AA-"). The 458,338-square-foot campus is comprised of three interconnected three-story office buildings, one five-story office building and one single-story flex industrial building. Through a sale-leaseback transaction, Allstate will occupy the campus under a 12-year lease, plus renewal options. Allstate is a leading insurer, primarily engaged in the personal property and casualty insurance business, as well as the life insurance, retirement and investment products business.
THE MEN'S WEARHOUSE - Corporate Headquarters - Houston MSA
CCIT acquired a 206,362-square-foot, two-story office building located in the Westchase District of Houston. The property serves as the corporate headquarters for The Men's Wearhouse, which has more than 14 years remaining on its lease, plus renewal options. The Men's Wearhouse is one of the largest specialty apparel retailers of men's apparel with 1,259 stores.
HARVARD VANGUARD MEDICAL ASSOCIATES - Office Building - Boston MSA
CCIT acquired a recently completed 49,250-square-foot medical office building in Concord, MA. The facility is leased for 17 years to Harvard Vanguard Medical Associates, a 630-physician medical group providing primary and specialty medical care. The property houses several medical groups, including an urgent care center, pharmacy, pediatrics, behavioral health, laboratory, endocrinology, internal medicine and nutrition. Harvard Vanguard is relocating to the property from an older facility across the street.
Boyd Messmann, senior vice president for office and industrial acquisitions at Cole, represented CCIT on both the Allstate and The Men's Wearhouse transactions, while Robert Corry, vice president for office and industrial acquisitions at Cole, represented CCIT on the Harvard Vanguard transaction.
About Cole Real Estate Investments, Inc.
Cole Real Estate Investments, Inc. (NYS: COLE) is an industry-leading net-lease REIT that acquires and manages real estate assets leased long-term to a high-quality, diversified tenant base. Since 1979, Cole has leveraged its deep relationships, efficiencies of scale and rigorous operational processes to acquire and actively manage retail, office and industrial properties. As of March 31, 2013, Cole Real Estate Investments owned $7.7 billion of gross assets, which included 1,013 properties representing approximately 43 million square feet of commercial real estate in 48 states. Through its private capital business, Cole Capital, Cole manages 1,031 additional properties with an aggregate purchase price of approximately $5.3 billion. To learn more, visit www.colereit.com.
Certain statements in this press release may be considered forward-looking statements that reflect the current views of Cole Real Estate Investments and Cole's management with respect to future events. Forward-looking statements about Cole's plans, strategies and prospects are based on current information, estimates and projections; they are subject to risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Forward-looking statements are not intended to be a guarantee of any event, action, result, outcome or performance in future periods. Cole does not intend or assume any obligation to update any forward-looking statements, and the reader is cautioned not to place undue reliance on them.
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