Adventus Realty Trust (“Adventus”) is pleased to announce the acquisition of 1000 Parkwood, a Class A 10-story office building located in the prestigious Cumberland/Galleria submarket of Atlanta, Georgia.
“1000 Parkwood marks our second acquisition this year in the Atlanta suburban office market,” commented Rod Johnston, President and CEO of Adventus. “The property has an exceptional location, serviced by two major interstate highways, and is visibly located in the rapidly evolving Cumberland/Galleria submarket.”
“This acquisition follows our disciplined approach to deploying capital, in order to strategically grow our investment portfolio and create unitholder value. We have expanded our presence in Atlanta to over 525,000 square feet of Class A office property, further strengthening our geographic diversification. We expect 1000 Parkwood to generate returns well in excess of its cost of capital, and be immediately accretive to our unitholders.”
Mr. Johnston continued, “We continue to see Atlanta as an exceptional opportunity for yield and growth given its diverse and robust economy. Strong office market performance has been driven by population and job growth, which has increased annually for the last five years, outpacing new supply in the suburban office market.”
Located in the Cumberland/Galleria submarket of Atlanta, Georgia, 1000 Parkwood has 212,705 square feet of leasable space, and was acquired for US $38.9 million, or US $183/sf, significantly below its estimated replacement cost of US $350/sf. The property is 92% leased with an average lease term of 4.7 years. Based on a 3-year average net operating income, the property was acquired at a cap rate of 7.5%.
Debt financing for the property was initiated by JPMorgan who provided US $25.3 million of non-recourse first mortgage financing on a 10 year basis at a fixed interest rate of 4.55% and no principal payment amortization for the first 3 years.
Adventus is a Canadian based private Real Estate Investment Trust (REIT) and is focused on US income producing commercial real estate, primarily in the suburban office markets of Chicago, Illinois and Atlanta, Georgia. For more information on Adventus including our team, corporate strategy, photo gallery, details of our portfolio and press releases, we invite you to visit our website at www.adventusrealty.com.
Cautionary Statements Regarding Forward-Looking Statements
This press release may contain forward-looking statements with respect to the REIT and its operations, strategy, financial performance and financial condition, as well as with respect to the previously disclosed acquisitions and future acquisitions of properties. These statements generally can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “plan”, “forecast”, “expect”, “intend”, “would”, “could”, “if”, “may” and similar expressions. The actual results and performance of the REIT and the acquisitions discussed herein could differ materially from those expressed or implied by such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, changes in interest rates, competition and changes in securities or other laws or regulations or the application thereof. The cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf.
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ADVENTUS REALTY TRUST
By its Trustee: ADVENTUS REALTY SERVICES INC.
Per: Rodney B. Johnston, FCPA, FCA
President and Chief Executive Officer