Artis REIT announced that it has entered into unconditional agreements with respect to the acquisition of $165.0 million of office properties in Canada and the United States. Artis also confirmed the closing of $117.0 million of previously announced property acquisitions.
Stampede Station is a newly constructed Class AA 10-storey office building located in Calgary. The building comprises 161,683 square feet of leasable space and is strategically located in Calgary’s Business District, across the street from the Calgary Stampede and Convention Grounds as well as a Light Rail Transit station. A first right of refusal to acquire the future Phase II Office development of 315,000 square feet was also obtained.
Artis has also agreed to acquire from the Ryan Companies US Inc. a new Class AA LEED Silver certified professional office building, currently under construction in northeast Phoenix, Arizona. Once built, the property will comprise 210,202 square feet of leasable area. The building design can accommodate an expansion of an additional 52,000 square feet. The building is 100.0 per cent pre-leased to the United States of America Government Services Administration, for a term of 20 years.
Artis closed the previously announced acquisitions
June 28, 2011, of 415 Yonge Street, a 191,880 square foot downtown Toronto office property. The purchase price of $49.7 million, representing a going-in capitalization rate of 7.0 per cent, was financed with cash on hand and from the proceeds of a $35.0 million, 10-year mortgage bearing interest at a rate of 4.67 per cent per annum.
June 30, 2011, of the Union Hills Office Plaza, a 142,773 square foot three-storey Class A office building located in metropolitan Phoenix, Arizona. The purchase price of US$27.1 million, representing a going-in capitalization rate of 8.1 per cent, was financed with cash on hand and from the proceeds of a US$18.9 million five-year mortgage bearing interest at a floating rate currently equivalent to 2.46 per cent per annum based on current bond rates.
June 30, 2011, of 201 Westcreek Boulevard, a 301,113 square foot Class A industrial building, with 70,977 square feet of office space on two floors. The purchase price of $34.4 million, representing a going-in capitalization rate of 8.4 per cent, was financed with cash on hand and from the proceeds of a $22.8 million three-year mortgage bearing interest at a rate of 3.43 per cent per annum.
July 6, 2011, of the Plymouth Corporate Campus, an 83,617 square foot industrial showroom complex located in a suburb of Minneapolis, Minnesota. The purchase price of US$5.8 million, representing a going-in capitalization rate of 8.3 per cent, was financed with cash on hand.