CCIT Acquires $202M of Net Lease Office Properties

Cole Capital, the private capital management business of Cole Real Estate Investments, Inc., announced that it had acquired five single-tenant corporate properties by Cole Corporate Income Trust, Inc. (CCIT) for a combined price of approximately $202.1 million. The properties include facilities in San Jose, Colorado Springs, St. Louis and Houston and are now part of Cole's office portfolio, which consists of 63 wholly owned properties located in 25 states, totaling approximately 11.6 million square feet with an aggregate purchase price of approximately $1.7 billion.

"These latest acquisitions are consistent with CCIT's strategy of securing mission-critical properties nationwide that are essential for corporate operations," says Thomas W. Roberts, EVP and head of real estate investments at Cole Real Estate Investments, Inc. in a GlobeSt.com article. "These 'necessity' properties boast credit-quality tenants, long-term leases, valuable rent increases and varied industries, while providing geographic diversification to the expanding CCIT portfolio."

The new acquisitions include:

LATTICE SEMICONDUCTOR CORPORATION – San Jose, CA MSA
CCIT acquired a 98,874-square-foot two-story, Class A office building leased to Lattice Semiconductor Corporation. The facility serves as a development center and product design facility for Lattice, and activities at the property include research and development, as well as prototype product manufacturing and testing. There are approximately 12.9 years remaining on the initial lease term, plus a renewal option.

FEDEX CORPORATE SERVICES – Colorado Springs, CO MSA
CCIT acquired a 155,508-square-foot three-story, Class A office building leased to FedEx Corporate Services, Inc., with a guaranty from FedEx Corporation. The property is the primary facility used by FedEx for the development and programming of various technologies that the company uses to route and track its delivery services. The lease has approximately 11.0 years remaining, plus renewal options.

SERVICENOW – San Jose, CA MSA
CCIT acquired a 148,866-square-foot three-building office complex leased to ServiceNow, Inc., a leading provider of cloud-based services that automate enterprise IT operations. The property serves as an operations facility for ServiceNow with an emphasis on research and development, as well as corporate functions. There are approximately 10.4 years remaining on the initial lease term, plus renewal options.

MAGELLAN HEALTH SERVICES – St. Louis, MO MSA
CCIT acquired a 232,521-square-foot three-story, Class A office building leased to Magellan Health Services, Inc. Magellan uses the property as a national technology, administrative and customer care center, and it is the main corporate location for the entire company's marketing, printing, production and mail operations. There are approximately 11.2 years remaining on the initial lease term, plus a renewal option.

TGS-NOPEC GEOPHYSICAL COMPANY – Houston, TX MSA
CCIT acquired a 97,295-square-foot three-story, Class A office building leased to TGS-NOPEC Geophysical Company. TGS-NOPEC Geophysical Company is a geophysical mapping company serving the oil and gas exploration and production industries. The property serves as TGS-NOPEC's headquarters for U.S. operations, as well as the home office for the global CEO. The lease has approximately 11.9 years remaining, plus renewal options.

For more news and information visit Blumberg Capital Partners.

Mack-Cali Sells New Jersey Office Building for $72.3M

Mack-Cali Realty Corporation announced this week that is had sold 55 Corporate Drive in Bridgewater, New Jersey in an all cash deal for $72.3 million. The four-story, 205,439-square-foot class A property was sold to a subsidiary of Cole Corporate Income Trust, Inc., an entity managed by Cole Real Estate Investments. Adam Spies, Kevin Donner and Neill Wessell with Eastdil Secured in New York represented the seller.

Mack-Cali developed the building in 2011 as a build-to-suit for Sanofi-Aventis. Building IV sits on 154 acres in the Route 78 East submarket of Somerset County, and is fully occupied by the diversified global healthcare leader.

"What appealed to us is a combination of investment-rate credit, it's a long-term lease (still 13 years), a strategically important asset—part of their U.S. headquarters, and it's a good-quality location," Robert Micera, Cole's chief investment officer for office and industrial, told Commercial Property Executive. "It's in good proximity to the major highways in New Jersey and in good proximity to New York. All of these things combined make this fit right in with our parameters of seeking long-term lease transactions that have great creditworthy tenants and good rent growth."

Mitchell E. Hersh, president and chief executive officer of Mack-Cali, commented, "The sale of this property continues our strategy of monetizing non-core assets." Mack-Cali Realty owns or has interests in 278 assets, including 269 office and office/flex properties totaling 31.1 million square feet and nine multi-family rental properties containing more than 3,300 residential units, all located in the Northeast.

For more news and information visit Blumberg Capital Partners.