CarrAmerica Acquires Cell Genesys Building in South San Francisco
Wednesday October 15, 10:02 am ET
WASHINGTON, Oct. 15 /PRNewswire-FirstCall/ -- CarrAmerica Realty Corporation (NYSE: CRE - News) today announced that it has acquired 500 Forbes Boulevard, a two-story, 155,685 square foot office and biotech building located in South San Francisco, California, for $51 million, with an expected year one yield on the investment of 14.7%. The building is currently 100% leased to Cell Genesys, Inc. (Nasdaq: CEGE - News) under a long-term lease. Cell Genesys researches, develops and commercializes new therapies for the treatment of cancer.
The property was built in 2003 and features state-of-the-art lab and office construction. It is proximate to research institutions such as Stanford University; the University of California, San Francisco; and the University of California, Berkeley; and is adjacent to the biotech firm Genentech. Other nearby amenities include hotels, public transportation (including CalTrain and BART), a marina and the San Francisco International Airport.
CarrAmerica Managing Director for the San Francisco Bay Area, Christopher Peatross, said, "Our purchase of the Cell Genesys Building is consistent with our strategy to acquire well-located, high-quality biotech and life sciences properties in Northern California. This property's premier location and state-of-the art laboratory facilities make it a valuable addition to our portfolio."
South San Francisco is the hub of biotech space in the San Francisco Bay Area. Containing over 6 million square feet of the Bay Area's 12 million square feet of biotech space, the market is home to many key biotech tenants. The concentration of biotech firms represents one of the most densely populated bioscience markets in the country.
CarrAmerica owns, develops and operates office properties in 12 markets throughout the United States. The Company has become one of America's leading office workplace companies by meeting the rapidly changing 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 298 operating office properties and has an office building under development in Washington, D.C. CarrAmerica's markets include Atlanta, 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 www.carramerica.com.
Estimates of FFO per share are by definition, and certain statements in this release 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 properties, possible charges or payments resulting from our guarantee of certain leases of HQ Global Workplaces, Inc., the ability of the general economy to recover timely from the current economic downturn, availability and creditworthiness of tenants, the level of lease rents and the availability of financing for both tenants and the Company, adverse changes in the real estate markets including, among other things, competition with other companies, risks of real estate acquisition and development (including the failure of pending acquisitions to close and pending developments to be completed on time and within budget), actions, strategies and performance of affiliates that the Company may not control or companies in which the Company has made investments, our ability to maintain our status as a REIT for federal income tax purposes, 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 on Form 10-K.
Source: CarrAmerica Realty Corporation |
