City Office REIT Announces Dallas Acquisition

Rhea-AI Summary

City Office REIT (NYSE: CIO) has completed the acquisition of The Terraces, a premier 173,000 square foot office building in Dallas, Texas, for $133.5 million. The building, which is LEED Gold certified, is located in the sought-after Preston Center submarket and is currently 99% leased with an average lease term of 8 years. This acquisition aligns with City Office's strategy to expand in high-demand markets and enhance cash flow stability from quality properties.

Positive

• Acquisition of The Terraces strengthens City Office's portfolio in a top market.
• The property is 99% leased, providing immediate cash flow stability.
• Location in a high-demand area enhances long-term growth potential.

Negative

• None.

VANCOUVER, Dec. 9, 2021 /PRNewswire/ -- City Office REIT, Inc. (NYSE: CIO) ("City Office" or the "Company") announced today that it has closed the acquisition of The Terraces, a premier office building in a top submarket of Dallas, Texas, for a gross purchase price of $133.5 million, exclusive of closing costs.

The 173,000 square foot LEED Gold property is the newest office building in an exceptional location.  The Terraces is situated in the highly desirable Preston Center submarket, known for its walkability, concentration of high-end retail and fine dining and close proximity to Dallas' most prestigious residential neighborhoods.  The building was delivered in 2017 with a full suite of amenities, including a state-of-the-art fitness center, rooftop deck, barista, full-service deli and a conference facility.  The property's tiered building structure creates multiple outdoor terraces for exclusive tenant use. The Terraces is 99% leased to a diverse tenant base, with a weighted average lease term remaining of approximately 8 years.

"Expanding in Dallas' strongest and highest barrier to entry markets has been a priority," commented James Farrar, the Company's Chief Executive Officer.  "The acquisition of The Terraces in Preston Center aligns with our focus on acquiring superior properties with long-term cash flow in the most desirable submarkets.  The amenity package, high-end tenant suites and prime location make The Terraces one of Dallas' top office properties.  The fully leased building provides cash flow stability with future growth in the center of one of Texas' wealthiest neighborhoods."

A detailed presentation regarding the transaction can be found on the Investor Relations section of the Company's website at www.cioreit.com.

About City Office REIT, Inc.

City Office REIT is an internally-managed real estate company focused on acquiring, owning and operating high-quality office properties located in leading 18-hour cities in the Southern and Western United States. City Office currently owns or has a controlling interest in 5.7 million square feet of office properties. The Company has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.

Forward-looking Statements

This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements within the meaning of the federal securities laws and as such are based upon the Company's current beliefs as to the outcome and timing of future events. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "approximately," "anticipate," "assume," "believe," "budget," "contemplate," "continue," "could," "estimate," "expect," "future," "hypothetical," "intend," "may," "outlook," "plan," "potential," "predict," "project," "seek," "should," "target," "will" or other similar words or expressions. There can be no assurance that actual forward-looking statements will be those anticipated by the Company. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement, including with respect to the terms and timing of future acquisition or disposition activity, if any.  Factors that could cause actual results to differ materially include, among other things, changes to the Company's expected liquidity position, uncertainty regarding acquisitions, dispositions or our operations, and the risk factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and subsequent filings with the United States Securities and Exchange Commission (the "SEC"). Forward-looking statements presented in this press release are based on management's beliefs and assumptions made by, and information currently available to, management. The forward-looking statements contained in this press release are based on historical performance and management's current plans, estimates and expectations in light of information currently available to us and are subject to uncertainty and changes in circumstances. There can be no assurance that future developments affecting us will be those that we have anticipated. Actual results may differ materially from these expectations due to the factors, risks and uncertainties described above, changes in global, regional or local political, economic, business, competitive, market, regulatory and other factors described in our news releases and filings with the SEC, including but not limited to those described in our Annual Report on Form 10-K for the year ended December 31, 2020 under the heading "Risk Factors" and in our subsequent reports filed with the SEC, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove to be incorrect, our actual results may vary in material respects from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company does not guarantee that the assumptions underlying such forward-looking statements contained in this press release are free from errors. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable securities laws.

Contact

City Office REIT, Inc.
Anthony Maretic, CFO
+1-604-806-3366
investorrelations@cioreit.com

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SOURCE City Office REIT, Inc.

FAQ

What is the value of the acquisition by City Office REIT?

City Office REIT acquired The Terraces for a gross purchase price of $133.5 million.

Where is The Terraces office building located?

The Terraces is located in the Preston Center submarket of Dallas, Texas.

What is the current leasing status of The Terraces?

The Terraces is currently 99% leased with a weighted average lease term of approximately 8 years.

Why did City Office REIT acquire The Terraces?

The acquisition aligns with City Office's focus on acquiring high-quality properties in desirable markets for long-term cash flow.