CCIT Buys 5 Net-Lease Office Properties for $202M
- Nov 27, 2013
By Gail Kalinoski, Contributing Editor
Cole Corporate Income Trust, Inc., has acquired five single-tenant corporate properties with a total of 733,062 square feet for $202.1 million, including two in San Jose, Calif., and one each in Houston, St. Louis and Colorado Springs, Colo.
“These latest acquisitions are consistent with CCIT’s strategy of securing mission-critical properties nationwide that are essential for corporate operations,” Thomas Roberts, executive vice president & head of real estate investments at Cole Real Estate Investments, Inc., said in a news release. “These ‘necessity’ properties boast credit-worthy tenants, long-term leases, valuable rent increases and varied industries, while providing geographic diversification to the expanding CCIT portfolio.”
The Phoenix-based REIT did not break out the sales price of each property. CCIT’s portfolio now has 63 wholly owned properties located in 25 states, totaling 11.6 million square feet worth with an aggregate purchase price of about $1.7 billion.
Two of the properties are located in San Jose. The REIT acquired a 98,874-square-foot, two-story, Class A office building leased to Lattice Semiconductor Corp. and used as a research and development facility. There are about 12.9 years on the initial lease, according to CCIT. The second San Jose asset is a 148,866-square-foot, three-building office complex leased to ServiceNow, Inc. that is used for R&D and corporate functions. The firm, a provider of cloud-based services for IT operations, has about 10.4 years left on its lease.
FedEx Corporate Services, Inc. leases a 155,508-square-foot, three-story, Class A office building in Colorado Springs that has approximately 11 years remaining on its lease, CCIT added.
The largest of the properties acquired by CCIT is a 232,521-square-foot, three-story, Class A office building leased to Magellan Health Services, Inc. in St Louis. It is the main corporate location for the company’s marketing, printing, production and mail operations and is also used as a customer care center. The lease has about 11.2 years remaining on its initial term.
CCIT also acquired a 97,295-square-foot, three-story, Class A office building leased to TGS-NOPEC Geophysical Company in Houston. The firm is a geophysical mapping company serving the oil and gas exploration and production industries. The building is TGS-NOPEC’s U.S. headquarters and houses the global CEO’s office. There are approximately 11.9 years left on the lease.
CCIT is sponsored by Cole Capital, the private capital management business of Cole Real Estate Investments, Inc. Cole, including Cole Capital, is slated to be acquired early next year by its competitor, American Realty Capital Properties, Inc., in a deal valued at about $11.2 billion that will create the largest net-lease REIT.
Other recent CCIT acquisitions include purchases of two Amazon facilities in August– a 1 million-square-foot fulfillment center in Chesterfield County, Va., for $81 million and a warehouse in Murfreesboro, Tenn., for $69 million. In July, CCIT added three Class A office buildings in Houston; Irving, Texas, and Concord, Mass., for a total of $160 million.