VANCOUVER, June 15, 2022 /PRNewswire/ -- City Office REIT, Inc. (NYSE: CIO) ("City Office" or the "Company") announced today that it has completed the previously announced sale of its Lake Vista Pointe property in Dallas, Texas for a gross sale price of $43.8 million inclusive of certain transaction costs that the buyer is responsible for paying.
The disposition represents a gain on sale of $22 million and translates to a 6.1% cash capitalization rate, including an adjustment for an unfunded tenant improvement allowance. Including this sale, the Company's ten dispositions to date have generated over $570 million of gains.
Net proceeds from the sale will be used to repay $16.8 million of mortgage debt and the balance will be held for general corporate purposes, which may include reinvestment in a tax-efficient exchange, a special dividend distribution, further debt reduction or a share repurchase.
About City Office REIT, Inc.
City Office REIT is an internally-managed real estate company focused on acquiring, owning and operating high-quality office properties located in leading 18-hour cities in the Southern and Western United States. City Office currently owns or has a controlling interest in 6.0 million square feet of office properties. The Company has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Forward-looking statements can often be identified by words such as "anticipate", "expect," "intend," "may" and similar expressions, and variations or negatives of these words. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. Factors that could cause actual results to differ materially include, among other things, the timing and amount of repurchases of CIO's common stock, if any, changes to CIO's expected liquidity position and the risk factors set forth in CIO's Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent filings with the Securities and Exchange Commission. The statements made herein speak only as of the date of this press release, and, except as required by law, CIO does not undertake any obligation to publicly update or revise any forward-looking statements.
City Office REIT, Inc.
Anthony Maretic, CFO
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SOURCE City Office REIT, Inc.