
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.











