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Glenborough Selling 21 Assets in Non-Core Markets

SAN MATEO, CA-Company president Andrew Batinovich says he wants to more narrowly focus on the company's core markets--Washington D.C., Southern California, Boston, Northern New Jersey, and Northern California.

By Brian K. Miller | Updated on April 07, 2005

SAN MATEO, CA-Glenborough Realty Trust has decided to unload 4 million sf in 21 properties that fall outside its core markets of Washington DC, Southern California, Boston, Northern New Jersey, and Northern California. The locally based company’s existing portfolio totals 11 million sf in 61 properties.Most of the properties to be sold are located in Chicago, St. Louis, Minneapolis, Indianapolis and Kansas City. Some of the properties are located in the company’s core markets but are not its core asset type. The largest group of properties in any one city is in Chicago, where Glenborough will be looking to sell five properties totaling about 1.1 million sf. The assets are Oak Brook International Center (98,431 sf), Oakbrook Terrace Corp Ctr III (232,052 sf), Columbia Centre II (150,133 sf), Embassy Plaza (140,744 sf) and Navistar (474,426 sf).Glenborough president Andrew Batinovich says the company is looking to increase long-term growth while minimizing short-term dilution by investing the capital from these properties in its five core markets…, either directly or through joint ventures, as well as potentially acquiring some of our outstanding securities.” Consistent with SFAS No. 144, the company will recognize an unaudited charge for impairment of about $58 million for 11 assets in the first quarter. The company projects gains on sale of about $82 million for 13 assets to be recognized when the assets are sold. When combined with three additional assets sold during the first quarter, the projects net gain on the sale of all 24 assets is $24 million.

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