acquisition

While Southern California will produce 30% of the company's net operating income, president and chief executive officer Tim Callahan says the company already gets 55% of its NOI from three markets--Los Angeles, New York City and Washington, DC. While the company's portfolio shakeout has slashed its number of markets from 19 to nine in less than three years, two-thirds of Trizec Properties' NOI will soon come from those top three markets, Callahan adds.

In 2003, Callahan notes, Trizec Properties got 20% of its net operating income from secondary markets. By the end of last year, the share of NOI from secondary markets had dropped to just 7%, he adds. "We anticipate this percentage could decrease to 3%" Callahan says.

Having sold the 770,000-sf Williams Center in Tulsa, OK for $42.5 million last month, Trizec Properties has three properties left in its secondary markets, totaling nearly 2.3 million sf. The largest are the 891,000-sf Bank of America Plaza in Charlotte, NC and 813,000-sf Northstar Center in Minneapolis. Also in the portfolio is another Charlotte asset, the 477,000-sf First Citizens Plaza.