Corporate Office Properties Trust Acquires 233,000 Square Foot Data Center in Manassas, Virginia for $115 Million
COLUMBIA, Md.--(BUSINESS WIRE)-- Corporate Office Properties Trust (COPT) (NYSE:OFC) announced today the acquisition of a 233,000 square foot data center known as Power Loft @ Innovation in Manassas, Virginia and the acquisition of the assets of Power Loft LLC, relating to the data center, for approximately $115 million. Prior to the acquisition, Power Loft LLC, founded by James F. Coakley, was the operating company providing development management, property management and leasing services to the data center.
The two story data center is located at 9651 Hornbaker Road on a secure, 20 acre site within the 1,500 acre Innovation Park that is 30 miles southwest of Washington, DC. Innovation Park is part of Northern Virginia's technology corridor. Power Loft @ Innovation is 16% leased, long term, to two tenants who have a combined initial power commitment of 3 megawatts and further expansion rights of up to a combined 5 megawatts of critical power. The data center is designed for LEED Silver Certification and its shell was completed in early 2010. This innovative data center features a unique two level design that places the 100,000 square feet of raised floor space on the second level with the accompanying equipment directly beneath it on the first level, creating significant efficiencies as well as the ability to increase critical power to keep pace with market demand for more densely powered space. COPT will complete the remaining development with an initial stabilization at 18 megawatts; full capacity is up to 30 megawatts of critical power. Additional development costs are estimated at $166 million.
In addition to acquiring Power Loft @ Innovation, COPT has formed a joint venture with James F. Coakley. The new joint venture, known as Powerloft Services LLC, will assume the responsibilities of the former operating company relating to development, management and leasing. COPT will own a controlling interest in the joint venture.
"We are pleased to announce this acquisition and joint venture to accelerate the growth of our data center business," stated Randall M. Griffin, President and Chief Executive Officer of Corporate Office Properties Trust. "The Northern Virginia data center market is among the strongest and most stable in the U.S., with demand expected to significantly outpace supply for the next several years," he added.
Company Information
Corporate Office Properties Trust (COPT) (NYSE:OFC) is a specialty office real estate investment trust (REIT) that focuses on strategic customer relationships and specialized tenant requirements in the U.S. Government, Defense Information Technology and Data sectors. The Company acquires, develops, manages and leases properties which are typically concentrated in large office parks primarily located adjacent to government demand drivers and/or in growth corridors. As of June 30, 2010, the Company owned 267 office and data properties totaling 20.6 million rentable square feet, which includes 20 properties totaling 1.1 million square feet held through joint ventures. The Company's portfolio primarily consists of technically sophisticated buildings in visually appealing settings that are environmentally sensitive, sustainable and meet unique customer requirements. COPT is an S&P MidCap 400 company and more information can be found at www.copt.com.
Forward-Looking Information
This press release may contain "forward-looking" statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company's current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as "may", "will", "should", "could", "expect", "estimate" or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Accordingly, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements.
Important factors that may affect these expectations, estimates, and projections include, but are not limited to:
-- the Company's ability to borrow on favorable terms;
-- general economic and business conditions, which will, among other
things, affect office property demand and rents, tenant
creditworthiness, interest rates and financing availability;
-- adverse changes in the real estate markets including, among other
things, increased competition with other companies;
-- risk of real estate acquisition and development, including, among other
things, risks that development projects may not be completed on
schedule, that tenants may not take occupancy or pay rent or that
development or operating costs may be greater than anticipated;
-- risks of investing through joint venture structures, including risks
that the Company's joint venture partners may not fulfill their
financial obligations as investors or may take actions that are
inconsistent with the Company's objectives;
-- changes in our plans for properties or our views of market economic
conditions that could result in recognition of impairment losses;
-- our ability to satisfy and operate effectively under federal income tax
rules relating to real estate investment trusts and partnerships;
-- governmental actions and initiatives; and
-- environmental requirements.
The Company undertakes no obligation to update or supplement any forward-looking statements. For further information, please refer to the Company's filings with the Securities and Exchange Commission, particularly the section entitled "Risk Factors" in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2009.
Source: Corporate Office Properties Trust (COPT)
Released September 14, 2010