Consolidated-Tomoka Land Co. (NYSE MKT: CTO) (the “Company”) today
announced the acquisition of an approximately 450,000 square foot, Class
A single-tenant office complex in the West Raleigh submarket of Raleigh,
North Carolina for $42.3 million (“Property”), or approximately $94 per
square foot. The three building Property, which is gold leed certified,
is situated on approximately 40 acres and is 100% leased to Wells Fargo
Bank N.A (“Wells Fargo”) under a triple-net lease with a remaining term
of approximately 9 years. The Property was built in 1996-1997 as a
build-to-suit for Wachovia Bank prior to that company being acquired by
Wells Fargo. The transaction is expected to be part of a 1031 like-kind
exchange.
The Property at 1100 Corporate Center Drive, is in the vibrant west
Raleigh submarket just five miles outside of downtown Raleigh and 12
miles from the Research Triangle Park. The Property is located just 15
miles from Raleigh-Durham International airport and is in close
proximity to the west campus of North Carolina State University. The
Property is also located within a mile of Interstate 40, Interstate 440,
and the Wade Extension.
John P. Albright, President and Chief Executive Officer of the Company
stated, “We are pleased to have purchased this Class A office property
in Raleigh, North Carolina, a real estate market that is currently
experiencing strong residential and commercial growth and we believe has
continued attractive growth potential.” Mr. Albright also noted, “We
completed this acquisition at the low end of our target cap rate
guidance but at a purchase price that represents approximately 50% of
replacement cost and a rent level that is currently half of market which
we believe provides an attractive long-term investment opportunity.” Mr.
Albright further noted, “With this transactions we have reached the top
end of our indicated guidance for the acquisition of income-producing
assets in 2015.”
About Consolidated-Tomoka Land Co.
Consolidated-Tomoka Land Co. is a Florida-based publicly traded real
estate company, which owns a portfolio of income properties and loan
investments in diversified markets in the United States, and over 10,500
acres of land in the Daytona Beach, Florida area. Visit our website at www.ctlc.com.
"SAFE HARBOR"
Certain statements contained in this press release (other than
statements of historical fact) are forward-looking statements. Words
such as “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,”
“could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,”
“project,” and similar expressions and variations thereof identify
certain of such forward-looking statements, which speak only as of the
dates on which they were made. Although forward-looking statements are
made based upon management’s expectations and beliefs concerning future
developments and their potential effect upon the Company, a number of
factors could cause the Company’s actual results to differ materially
from those set forth in the forward-looking statements. Such factors may
include uncertainties associated with closing land transactions,
including the likelihood, timing, and final transaction terms thereof,
the estimate of the cost of completing infrastructure work affiliated
with certain land transactions and the impact on the total estimated
gain as well as the timing of the recognition of that gain, our ability
to obtain necessary governmental approvals for our land transactions or
to satisfy other closing conditions, as well as the uncertainties and
risk factors discussed in our Annual Report on Form 10-K for the fiscal
year ended December 31, 2014 and in our Quarterly Report on Form 10-Q
for the quarter ended June 30, 2015, each filed with the Securities and
Exchange Commission. There can be no assurance that future developments
will be in accordance with management’s expectations or that the effect
of future developments on the Company will be those anticipated by
management.
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