PHOENIX — Cole Capital, the private capital management business of Cole Real Estate Investments Inc. (NYSE: COLE), has acquired five single-tenant office properties throughout the United States for approximately $202 million.
“These latest acquisitions are consistent with Cole's strategy of securing mission-critical properties nationwide that are essential for corporate operations,” says Thomas Roberts, executive vice president and head of real estate investments at Phoenix-based Cole. “These necessity properties boast credit-quality tenants, long-term leases, valuable rent increases and varied industries, while providing geographic diversification to the expanding Cole portfolio.”
The properties, which are located in San Jose, Calif.; Colorado Springs, Colo.; St. Louis; and Houston, highlight the trust’s focus on building a portfolio of diversified single-tenant properties with creditworthy tenants under long-term net leases, according to a statement from the trust.
Cole Real Estate Investments Inc. (CCIT) acquired two office properties in the San Jose metropolitan area. The first is a 98,874-square-foot, two-story office building leased to Lattice Semiconductor Corp. in San Jose, Calif. The Class A facility serves as a development center and product design facility for Lattice. The building houses Lattice’s research and development operations, as well as prototype product manufacturing and testing. Lattice has 12.9 years remaining on its initial lease term, plus a renewal option.
The second office property in San Jose is a 148,866-square-foot, three-building office complex leased to ServiceNow Inc., a provider of cloud-based services that automate information technology operations. The property serves as an operations facility for ServiceNow with an emphasis on research and development, as well as corporate functions. The company has approximately 10.4 years remaining on its initial lease term, plus renewal options.
CCIT also purchased a 155,508-square-foot, three-story office building leased to FedEx Corporate Services Inc. in metro Colorado Springs. FedEx uses the Class A facility for the development and programming of various technologies to route and track its delivery services. FedEx has approximately 11 years remaining on its lease, plus renewal options.
Magellan Health Services Inc. leases the 232,521-square-foot, three-story office building in metro St. Louis. Magellan uses the property as a national technology, administrative and customer care center, and it is the main corporate location for the company's marketing, printing, production and mail operations. The company has approximately 11.2 years remaining on its initial lease term, plus a renewal option.
TGS-NOPEC Geophysical Co. leases the 97,295-square-foot, three-story office building in the Houston metropolitan area. TGS-NOPEC Geophysical is a mapping company serving the oil and gas exploration and production industries. The property serves as TGS-NOPEC's headquarters for its U.S. operations, as well as the home office for the global CEO. The lease has approximately 11.9 years remaining, plus renewal options.
Cole Corporate Income Advisors LLC, a subsidiary of CCIT, serves as external advisor to the trust. The company’s real estate portfolio currently includes 63 wholly owned properties located in 25 states, totaling approximately 11.6 million square feet worth approximately $1.7 billion.
CCIT’s stock price closed at $14.31 per share on Friday, Nov. 29. The stock price is up from $11.50 per share when the trust began trading on the New York Stock Exchange on June 20.