Adventus Realty Trust by its Trustee, Adventus Realty Services Inc. (the “Trust” or the “Company”) is pleased to report leasing has been strong over the past three months in the entire portfolio; however, it has been particularly strong in Columbia Centre III (“CCIII”).
In the past week, Life Fitness executed a new 7 year lease for a total of 55,000 s.f. of leasing in CCIII. This will result in new leasing of 42,000 s.f. and a relocation and renewal of 13,000 s.f. by Life Fitness. Capital costs for this new lease will come from the cash reserve maintained by the Lender. Earlier in 2022 and as communicated to Unitholders on July 8, 2022, we also entered into a new lease with Chicago Mortgage Solutions for an additional 55,000 s.f.
The two new leases signed in 2022 take vacancy down to approximately 27% from in excess of 60% at the end of 2021, due to two significant lease terminations during COVID-19. Prior to COVID-19, CCIII had consistent vacancy below 10%.
We have previously reported that new tenant leasing was a significant problem during COVID-19 as businesses were not prepared to re-locate during COVID-19. The new tenant leasing for this property in 2022 is strong evidence that this problem area is now dissipating.
To move CCIII from value-add to stabilized status (below 20% vacancy), we need to execute additional new leasing of approximately 20,000-25,000 s.f. for this property. In this regard, we also have 3 proposals under negotiation for an additional 30,000 s.f. of new leasing, and one renewal almost complete for 15,000 s.f. for CCIII.
We will have more to report on 2022 Leasing Activity later this month in connection with our Q2 2022 Report to Unitholders.
Adventus is a Canadian based private Real Estate Investment Trust (REIT) and is focused on US income producing commercial real estate, 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.
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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