Trizec Says Good-Bye to Columbus

CHICAGO-With the $29-million sale of the Borden Building in Columbus, OH, Trizec Properties, Inc. has exited its fourth non-core market since the beginning of 2003, with buildings in eight other markets up for sale. In addition, REIT officials say they are not afraid to sell at least one property in their core markets “where pricing is exceptional,” according to chief investment officer Casey Wold during Trizec Properties’ earnings conference call.

The 34-story, 569,000-sf Borden Building was only 71.3% occupied, the third-worst performer in the REIT’s entire 41-million-sf portfolio. However, the $51 per sf was about half the appraised value three years ago, and even sharper discount to replacement value. “Our view there was to exit the Columbus market, and there was a ton of roll-over,” Wold explains.

Elsewhere, Wold says investors have come looking at properties in the non-core markets, as they have been priced out of larger markets. “We’ve known for some time that we’d be a seller,” Wold says. “For many of these properties, the time is now.”