Piedmont To Sell 14 Office Buildings Across The U.S. For $425M
Piedmont Office Realty Trust has entered into an agreement to sell 14 assets to two undisclosed buyers.
The transaction is valued at $425.9M, but another $5M to $10M could be added to the sales price if leasing targets are achieved within six months following the closing date.
Among the assets being sold are office buildings in Phoenix, Arizona; Auburn Hills, Michigan; Fort Lauderdale, Florida; Brentwood and Nashville, Tennessee; and Quincy, Massachusetts. As a result of the deal, Piedmont will exit four markets and three submarkets with a total sale of 2.6M SF.
The Johns Creek, Georgia-based REIT is anticipated to record a $40M gain in conjunction with the closing of one of the transactions, in addition to recording a non-cash impairment loss (a common expense that can reduce earnings without affecting cash flow) of approximately $48M for the other transaction. This is expected to occur in the fourth quarter of 2017.
Both deals are expected to close between Q4 and January.