Home Featured Piedmont Closes on Glendale, CA Sale, Buys in Burlington, MA

Piedmont Closes on Glendale, CA Sale, Buys in Burlington, MA

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Piedmont Office Realty Trust recently revealed two completed capital market transactions. On November 30, 2018, Piedmont completed the sale of 800 North Brand Boulevard in Glendale, CA for approximately $160 million in total proceeds. On December 12, 2018, the company completed the acquisition of 25 Burlington Mall Road in Burlington, MA for approximately $74 million.

Commenting on the transactions, Donald A. Miller, CFA, Piedmont’s Chief Executive Officer, said “The successful disposition of 800 North Brand in Glendale, CA coupled with the acquisition of 25 Burlington Mall Road is reflective of our strategy of disposing of select non-core and mature assets at low yields and reinvesting proceeds accretively into our strategic markets where Piedmont has an existing presence and dominant market share.”

He added that “When you analyze the combined capital allocation decisions we made during the fourth quarter (including the previously announced acquisition of 9320 Excelsior Boulevard near Minneapolis, MN for $49 million on October 25, 2018), we estimate Piedmont will realize approximately $0.03 per share annualized in FFO accretion, while paying down debt by approximately $35 million.”

Totaling 287,776 square feet of leasable space, 25 Burlington Mall Road is presently 88% leased to a diverse tenant roster anchored by Lahey Hospital & Medical Center, and Bank of America, Merrill Lynch. Strategically situated in close proximity to Burlington’s shopping, dining and entertainment options and adjacent to the full-service Boston Marriott Burlington Hotel, the 25 Burlington Mall Road property provides easy access to Interstate 95 (Route 128) and Route 3, complemented by MBTA bus service to the Alewife Red Line station.

Brent Smith, President and Chief Investment Officer for Piedmont, noted, “The Mall Road purchase builds upon our dominant position on Rt. 128N in Boston, within close proximity to four other Piedmont-owned assets in Burlington.  This acquisition will allow us to expand our operational synergies and capture almost 40% of the Class-A market share in this quality Boston submarket.”