Corporate Office Properties Trust Purchases Three Office Buildings in Baltimore-Washington Corridor.COLUMBIA, Md.--(BUSINESS WIRE)--Jan. 8, 1999-- 1998 Acquisitions Total $348 million; Company Grows Real Estate Assets to $550 million Corporate Office Properties Trust Corporate Office Properties Trust Inc. (COPT) (NYSE: OFC) is a publicly-traded real estate investment trust (REIT) corporation that specializes in office development, and describes itself as "a fully integrated, self-managed real estate investment trust that focuses on the (NYSE NYSE See: New York Stock Exchange : OFC OFC Office OFC Officer OFC Of Course OFC Oxygen Free Copper OFC Oceania Football Confederation (soccer) OFC Optical Fiber Cable OFC Optical Fiber Communications OFC Optical Fiber Conference ) announced today the $18.9 million acquisition of the three-building, 149,000 square foot Gateway 44 office portfolio in Columbia, Maryland Columbia is a census-designated place and planned community in Howard County, Maryland, United States. It is a suburb of Baltimore, and, to a lesser degree, Washington, DC. It began with the idea that a city could enhance its residents' quality of life. . The acquisition of the buildings, which are 100% leased to companies including Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. , Johns Hopkins University Johns Hopkins University, mainly at Baltimore, Md. Johns Hopkins in 1867 had a group of his associates incorporated as the trustees of a university and a hospital, endowing each with $3.5 million. Daniel C. and Cadence Design Systems (company) Cadence Design Systems - A company that sells electronic design automation software and services. http://cadence.com/. See also Verilog. , Inc., increases Corporate Office Properties Trust's holdings in the Baltimore/Washington corridor The Baltimore/Washington corridor is between Washington, D.C. and Baltimore, MD, consisting principally of Anne Arundel, Howard, Montgomery and Prince George's counties. to more than 2.3 million square feet of office space among 28 buildings. Included in the Gateway acquisition is a contiguous, improved development site that can support the construction of an additional three-story, 60,000 square foot office building. The Company expects to break ground on this project in 1999. The Company funded the acquisition using its existing secured revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility with Bankers Trust The Bankers Trust is a historic American banking organisation that was acquired by Deutsche Bank in 1998. It was originally set up when banks could not perform trust company services. . During 1998, the Company grew to $550 million in real estate assets, completing $348 million in acquisitions and adding 40 properties totaling nearly 3.1 million square feet. In addition, the Company has 257,000 square feet representing $45 million under development that the Company expects to be completed in 1999. Of these projects under development, 61% is pre-leased. The Company now owns 48 suburban office properties in Maryland, Pennsylvania, and New Jersey totaling nearly 4.3 million square feet of leasable space. As of December 31, 1998, the Company's total office portfolio is 98% leased. Columbia Gateway The newly acquired office buildings are located at 6716, 6740 and 6760 Alexander Bell Drive at Gateway Crossing in Columbia Gateway, a 300-acre business community positioned at the mid-point between Baltimore and Washington, D.C. With the Baltimore-Washington International Airport located less than five miles away, the community is located at the intersection of Interstate 95 and MD Route 175. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Colliers Pinkard's Office and Industrial Market Review, the vacancy level as of December 1998 among Class A office buildings in the Howard County market is below 4%. The Company now owns, or has under construction, 363,000 square feet of space in Columbia Gateway. Both 6716 and 6760 Alexander Bell Drive are two-story, brick and glass office buildings consisting of 52,000 and 37,000 square feet of space respectively. 6740 Alexander Bell Drive is a three-story, 60,000 square foot brick and glass office building. Located on a 15-acre site, the portfolio was completed in 1989 and renovated in 1992. "The acquisition of these three Class A buildings provides the Company with a critical mass of office buildings in Columbia Gateway, one of the most strategic locations in the Baltimore-Washington Corridor," explained Randall M. Griffin, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. for Corporate Office Properties. "These Class A properties have strong, stable tenants with opportunity for growth in rental revenue. We believe we can create significant additional value by developing a new building on the adjacent parcel to meet our existing tenants' expansion requirements and take advantage of the favorable leasing conditions currently existing in the marketplace," he added. Corporate Realty Management (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ), the Company's property management subsidiary, will assume responsibility for the management of the portfolio. CRM manages 18 million square feet of commercial properties from New Jersey through Northern Virginia. Other Columbia Gateway Projects In October 1998, the Company broke ground on Woodlands Two, a 106,000 square foot, four-story office building in the Columbia Gateway park. The Company also owns Woodlands One, a 108,000 square foot, four-story office building completed in September 1998 that is 100% leased to Magellan Health Services health services Managed care The benefits covered under a health contract . In Woodlands Two, Magellan Health Services has pre-leased 35,000 square feet of space. The remaining space is available for lease. The Company expects to complete the $14.5 million Woodlands Two building in mid-1999. Both buildings are on Columbia Gateway Drive. Company Information Corporate Office Properties Trust is a fully-integrated, self-managed real estate investment trust which focuses on the acquisition, management, ownership and development of suburban office properties located in targeted suburban submarkets in the United States. The Company presently owns 57 properties totaling nearly 5 million square feet of space. The Company's property management subsidiary, Corporate Realty Management, manages 18 million square feet for the Company and third parties. Corporate Development Services, the Company's development subsidiary, provides a wide range of development and construction management services. Forward-Looking Information This press release contains forward-looking information based upon the Company's current best judgement and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with the forward-looking information include the strength of the commercial office real estate market in which the Company operates, competitive market conditions, general economic growth, interest rates and capital market conditions. For further information, please refer to the Company's filings with the Securities and Exchange Commission. |
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