ORLANDO, Fla., Feb. 15 /PRNewswire-FirstCall/ -- Commercial Net Lease Realty, Inc. , a real estate investment trust, announced today that it has signed a definitive agreement with Brookfield Financial Properties, L.P., an affiliate of Brookfield Properties Corporation ("Brookfield"), to sell its office property located in the Pentagon City submarket of the Washington, D.C. metropolitan area for $235,430,000, which includes the assumption of a $95,000,000 loan secured by the property. The property is leased to the United States of America and serves as the headquarters of the Transportation Security Administration under a lease that expires in 2014.
The Company expects to complete the transaction by April 2006, subject to customary closing conditions.
"The sale of these office buildings will enable us to harvest the value that has been created," Craig Macnab, President and Chief Executive Officer, noted, "and the reinvestment of the proceeds into a well-diversified portfolio of retail properties is consistent with our long-term strategy."
Commercial Net Lease Realty invests primarily in high-quality, retail properties subject generally to long-term, net leases with established tenants, such as Barnes & Noble, Best Buy, CVS and OfficeMax. As of December 31, 2005, the Company owned 524 Investment Properties in 41 states with a gross leasable area of approximately 9.2 million square feet. These Investment Properties are leased to 176 corporations in 61 industry classifications.
Statements in this press release that are not strictly historical are "forward-looking" statements. Forward-looking statements involve known and unknown risks, which may cause the Company's actual future results to differ materially from expected results. These risks include, among others, general economic conditions, local real estate conditions, changes in interest rates, increases in operating costs, the availability of capital, and the profitability of the Company's taxable subsidiary. Additional information concerning these and other factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the Company's SEC filings, including, but not limited to, the Company's Annual Report on Form 10-K. Copies of each filing may be obtained from the Company or the SEC. Consequently, such forward-looking statements should be regarded solely as reflections of the Company's current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The Company undertakes no obligation to publicly release the results of any revisions to these forward- looking statements that may be made to reflect events or circumstances after the date these statements were made.
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