City Office REIT, Inc. (NYSE: CIO) (“City Office” or the “Company”) announced today that it has completed the sale of its Cherry Creek property in Denver, Colorado for a gross sale price of $95.0 million before customary closing and transaction costs.
The three-building, 356,000 square foot campus was 100% occupied by the State of Colorado at the time of sale. The transaction represented a capitalization rate of approximately 5.8% based on in-place cash net operating income.
“The Cherry Creek sale metrics highlight the inherent value of our portfolio,” said James Farrar, the Company’s Chief Executive Officer. “Cherry Creek is a great example of buying well-located real estate, enhancing the value of the property through a focused leasing and reinvestment strategy and monetizing at an attractive valuation. We remain focused on unlocking further value across our portfolio and positioning City Office to take advantage of acquisition opportunities as market conditions improve.”
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 5.5 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.
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 future acquisition or disposition activity, if any, the terms on which we may acquire or dispose of property in the future, if at all, and future or expected cap rates. 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, 2019 and subsequent filings with the United States Securities and Exchange Commission. 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, 2019 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.
Anthony Maretic, CFO