Columbia Property Trust, Inc. announced the sale of 11 suburban office properties totaling 2.9 million square feet for total gross proceeds of $433.3 million to an unnamed real estate private equity fund.
The proceeds will be used to reduce outstanding borrowings.
The company will repay amounts outstanding on its revolving credit facility, which was recently used to pay off a $206.5 million loan secured by 333 Market in San Francisco, and pay off a $21.0 million mortgage loan on one of the disposition properties.
Proceeds from this sale will also be used to pay off a $105.0 million loan secured by 100 East Pratt in Baltimore, Maryland.
Proceeds from 10 of the properties are available immediately, and the remaining proceeds are expected to be available 30 days later.
The transaction is expected to result in a net gain of $17 million. The Company continues to market the three remaining properties.
Nelson Mills, president and CEO of Columbia, said, “The pricing for the first 11 properties is in line with our expectations, and we are confident that, with the sale of the three remaining properties, total proceeds will be within our expected range of $500 million to $600 million.”