Franklin Street Properties Corp. (the “Company”, “FSP”, “our” or “we”) (NYSE American: FSP), a real estate investment trust (REIT), announced today the sale of its only property in Durham, North Carolina (the “Property”) for gross proceeds of $89.7 million, or approximately $346 per square foot. The Property is located at 4820 Emperor Boulevard and consists of an approximately 259,531 square foot office building that is 100% leased to a tenant in the life sciences industry.
The Company expects to record a gain of approximately $42 million in the fourth quarter of 2020 in connection with the sale of the Property. The Company intends to use net proceeds from the sale of the Property to repay debt.
George J. Carter, Chairman and Chief Executive Officer of FSP, commented as follows:
“Emperor Boulevard was FSP’s only property within the Raleigh-Durham marketplace and its disposition reflects our strategy to sell assets when we believe that their respective value proposition and resulting pricing have been maximized for our shareholders. At this time, we believe that the best use for the net proceeds from the sale of the Property is debt reduction. However, we will continue to evaluate potential future alternative avenues for redeployment, which could include new property investments.”
This press release, along with other news about FSP, is available on the Internet at www.fspreit.com. We routinely post information that may be important to investors in the Investor Relations section of our website. We encourage investors to consult that section of our website regularly for important information about us and, if they are interested in automatically receiving news and information as soon as it is posted, to sign up for E-mail Alerts.
About Franklin Street Properties Corp.
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. To learn more about FSP please visit our website at www.fspreit.com.
Statements made in this press release that state FSP’s or management’s intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may also contain forward-looking statements based on current judgments and current knowledge of management, which are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Investors are cautioned that our forward-looking statements involve risks and uncertainty. See the “Risk Factors” set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2019, as the same may be updated from time to time in subsequent filings with the United States Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
Georgia Touma, 877-686-9496