COLUMBIA, MD–One of the assumptions behind Corporate Office Properties Trust's guidance for 2017 was that it would make between $80 million to $90 million in asset dispositions and about $20 million in land sales.
Recent sales of $53 million have put the REIT more than halfway towards its goal.
In mid-January, it sold 5.3 acres of land for $14 million and last week it closed on the sale of 3120 Fairview Park Dr., a 190,500-square foot office in the Merrifield submarket, for $39 million. The building was 87% occupied.
The REIT also announced it has an additional $10 million of asset sales under contract and $37 million to $47 million in contract negotiations, all of which are expected to close during 2017.
In 2016 COPT sold $344 million of land and operating properties totaling 1.6 million square feet, the most notable being Arborcrest Corporate Campus, a redevelopment office project in Plymouth Meeting, Pa., for $143 million.
Meanwhile, the REIT will be focusing on leasing and development as its growth drivers.
“Having spent the past five years improving our portfolio and balance sheet, we are excited to now have the portfolio we want, the balance sheet we want, the right people in place to manage both, and a defense spending environment that should translate into exciting growth opportunities throughout our portfolio,” CEO Stephen Budorick said when the guidance was released.
COLUMBIA, MD–One of the assumptions behind Corporate Office Properties Trust's guidance for 2017 was that it would make between $80 million to $90 million in asset dispositions and about $20 million in land sales.
Recent sales of $53 million have put the REIT more than halfway towards its goal.
In mid-January, it sold 5.3 acres of land for $14 million and last week it closed on the sale of 3120 Fairview Park Dr., a 190,500-square foot office in the Merrifield submarket, for $39 million. The building was 87% occupied.
The REIT also announced it has an additional $10 million of asset sales under contract and $37 million to $47 million in contract negotiations, all of which are expected to close during 2017.
In 2016 COPT sold $344 million of land and operating properties totaling 1.6 million square feet, the most notable being Arborcrest Corporate Campus, a redevelopment office project in Plymouth Meeting, Pa., for $143 million.
Meanwhile, the REIT will be focusing on leasing and development as its growth drivers.
“Having spent the past five years improving our portfolio and balance sheet, we are excited to now have the portfolio we want, the balance sheet we want, the right people in place to manage both, and a defense spending environment that should translate into exciting growth opportunities throughout our portfolio,” CEO Stephen Budorick said when the guidance was released.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
