CarrAmerica Acquires 85,585 Square Foot Building on North First Street in San Jose, CA
January 13 2006 - 9:23AM
PR Newswire (US)
WASHINGTON, Jan. 13 /PRNewswire-FirstCall/ -- CarrAmerica Realty
Corporation (NYSE:CRE) announced today that it has purchased 3553
North First Street from NetIQ Corporation (NASDAQ:NTIQ).
CarrAmerica paid $10.3 million for the 85,585 square foot office
building in San Jose, California. The property is expected to
provide a year one GAAP return of 2.2% and a stabilized GAAP return
of 9.3%. These expected yields reflect a four month leaseback to
NetIQ and speculative leasing of the building thereafter. (Logo:
http://www.newscom.com/cgi-bin/prnh/19990820/CRELOGO ) CarrAmerica
Managing Director for Northern California, Christopher Peatross,
commented, "This acquisition gives us an excellent opportunity to
reposition 3553 North First Street, which offers a prime location
along the North First Street corridor in San Jose. Currently, the
building has new interiors, state-of-the-art building systems and
abundant on-site amenities, including tennis, bocce and basketball
courts; ample parking; a fitness center with shower facilities; a
cafe; and an outside patio with a built-in barbeque. We plan to
renovate the exterior, which will upgrade the entire project to
Class A status." Mr. Peatross added, "The property is strategically
located between two CarrAmerica properties, 3571 North First Street
and Rio Robles Technology Park, allowing us tremendous flexibility
to accommodate the diverse needs of tenants seeking space in the
North First Street Corridor." Completed in 1984, 3553 North First
Street is located on the high profile corner of North First Street
and Rio Robles and is one-half block south of a Light Rail
substation. The building is 60% one-story and 40% two-story, with
10 to 15 foot ceiling heights. The site is a five-minute commute
from San Jose Airport and offers pedestrian access to the largest
residential development in San Jose. The listing brokers in this
transaction were John Brady of CRESA Partners and Gregg von Thadden
of Colliers International. In Northern California, CarrAmerica now
owns, directly or through joint ventures, interests in 89 office
and R&D buildings containing 6.9 million square feet.
CarrAmerica owns, develops and operates office properties in 12
markets throughout the United States. The company has become one of
America's leading office companies by meeting the needs of its
customers with superior service, a large portfolio of quality
office properties and extraordinary development capabilities.
Currently, CarrAmerica and its affiliates own, directly or through
joint ventures, interests in a portfolio of 294 operating office
properties, totaling approximately 27 million square feet.
CarrAmerica's markets include Austin, Chicago, Dallas, Denver, Los
Angeles, Orange County, Portland, Salt Lake City, San Diego, San
Francisco Bay Area, Seattle and metropolitan Washington, D.C. For
additional information on CarrAmerica, including space
availability, visit our web site at http://www.carramerica.com/.
Estimates of Diluted FFO and earnings per share and certain other
statements in this release, including management's expectations
about, among other things, operating performance and financial
conditions, may constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995
(the "Reform Act"). Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
the actual results, performance, dividends, achievements or
transactions of the company and its affiliates or industry results
to be materially different from any future results, performance,
achievements or transactions expressed or implied by such
forward-looking statements. Such factors include, among others, the
following: national and local economic, business and real estate
conditions that will, among other things, affect demand for office
space, the extent, strength and duration of any economic recovery,
including the effect on demand for office space and the creation of
new office development, availability and creditworthiness of
tenants, the level of lease rents, and the availability of
financing for both tenants and us; adverse changes in real estate
markets, including, among other things, the extent of tenant
bankruptcies, financial difficulties and defaults, the extent of
future demand for office space in our core markets and barriers to
entry into markets which we may seek to enter in the future, the
extent of the decreases in rental rates, our ability to identify
and consummate attractive acquisitions on favorable terms, our
ability to consummate any planned dispositions in a timely manner
and on acceptable terms, our ability to successfully reinvest the
proceeds from dispositions in other properties or markets with
improved returns, our ability to complete development projects on
time and within budget and our ability to stabilize such projects,
and changes in operating costs, including real estate taxes,
utilities, insurance and security costs; actions, strategies and
performance of affiliates that we may not control or companies in
which we have made investments; ability to obtain insurance at a
reasonable cost; ability to maintain our status as a REIT for
federal and state income tax purposes; ability to raise capital;
effect of any terrorist activity or other heightened geopolitical
crisis; governmental actions and initiatives; and
environmental/safety requirements. For a further discussion of
these and other factors that could impact the company's future
results, performance, achievements or transactions, see the
documents filed by the company from time to time with the
Securities and Exchange Commission, and in particular the section
titled, "The Company -- Risk Factors" in the company's Annual
Report or Form 10-K.
http://www.newscom.com/cgi-bin/prnh/19990820/CRELOGO
http://photoarchive.ap.org/ DATASOURCE: CarrAmerica Realty
Corporation CONTACT: Maureen Wheeler of CarrAmerica Realty
Corporation, +1-202-729-1756, Web site: http://www.carramerica.com/
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