AT&T Looking To Sell 13-Building Office Portfolio In Huge Sale-Leaseback Deal

444 Michigan Ave. In Detroit, Which Houses At&T.

AT&T is looking to monetize a substantial chunk of its office assets.

The telecommunications giant is in talks with multiple potential buyers for a 13-property portfolio of office buildings it owns and occupies across nine cities, CoStar reports. The properties, collectively dubbed by AT&T as the Central Office Portfolio, total about 3.6M SF and are being marketed for sale by JLL.

As part of the deal AT&T is offering, the company is committing to lease back 43% of the portfolio's total square footage as a way to guarantee a revenue stream for the next owner, a spokesperson told CoStar. AT&T would sign a 20-year lease for approximately 1.5M SF at $10.12 per SF in the first year, with 2.5% increases every year after.

The properties are as follow in descending order of size, as reported by CoStar:

  • 444 Michigan Ave. in Detroit, 560K SF

  • 111 North Fourth St. in Columbus, Ohio, 520K SF

  • 1365 Cass Ave. in Detroit, 425K SF

  • 3303 Weslayan St. in the Greenway Plaza development district of Houston, 403K SF

  • 635 Grant St. in Pittsburgh, 367K SF

  • 722/740 North Broadway St. in Milwaukee, 282K SF

  • 445 State St. in Detroit, 241K SF

  • 629 West Fifth St. in Winston-Salem, North Carolina, 218K SF

  • 9403 Queens Blvd. in the Rego Park neighborhood of Queens, 195K SF

  • 1444 Jericho Turnpike in Huntington, a town in Suffolk County on New York's Long Island, 136K SF

  • 2400 South Westmoreland Road in Dallas, 89K SF

  • 36 South Fairview Ave. in the Chicago suburb of Park Ridge, Illinois, 85K SF

  • 6800 Harding Ave. in Miami Beach, 68K SF

AT&T has been selling off properties or converting ownership to tenancy across the country since its acquisition of Time Warner, for which it still carries a $150M debt obligation, CoStar reports.

Among the largest associated deals came from its newly created subsidiary, WarnerMedia, which completed a sale-leaseback deal with Related Cos. last year for its office condo at 30 Hudson Yards in New York for $2.2B. AT&T also sold its own headquarters in Dallas in 2018, and has been consolidating office space in areas like Atlanta.

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