Artis Real Estate Investment Trust will buy three new office buildings in three U.S. cities, as it shifts its focus toward properties in struggling markets.
The buildings are in Phoenix, New Hartford, N.Y., and Tampa and come with an aggregate purchase price of $52.9-million.
"The [buildings]are all are well-located within their respective markets and boast new generation design and construction," said Armin Martens, CEO of Artis. "All three properties are 100 per cent leased to strong credit-rated tenants on long-term leases with contractual rent escalations."
The REIT provided the following information on the buildings:
- The Humana Building, a three-storey Class A professional office complex located in metropolitan Phoenix, Arizona. The Humana Building comprises 106,418 square feet of leasable area and is 100 per cent leased to Humana Pharmacy Inc. until 2017 with periodic rent escalations. The purchase price of $14.8-million represents a capitalization rate of 7.5 per cent was financed with cash on hand and from the proceeds of a new U.S. $10.0-million 5-year floating rate mortgage currently bearing interest at a rate of 2.5 per cent a year.
- The Hartford Corporate Plaza, a three-storey Class A office building located in New Hartford, New York. The property comprises 122,760 square feet of leasable area with an additional 50,000 square feet of undeveloped area. The property is 100 per cent leased to Hartford Fire Insurance Company until 2018 with periodic rent escalations. The purchase price of $17.6-million represents a capitalization rate of 9 per cent.
- The Mosaic Building, a four-storey LEEDs Gold certified Class A office building located in a suburb of Tampa, Florida. The Mosaic Building comprises 107,463 square feet of leasable area, with expansion rights for an additional 11,402 square feet to meet the tenant's future needs. The property is 100 per cent leased to the Mosaic Company until 2020; the lease provides for regular annual rent increases. The purchase price of U.S. $20.5-million represents a capitalization rate of 8.1 per cent.Report Typo/Error
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