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Wednesday, 19 February 2020

Piedmont Office to Structure Dallas Purchase as Tax-Deferred Exchange

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Commercial Real Estate Direct Staff Report

Piedmont Office Realty Trust Inc., which paid $400 million, or $285.71/sf, for the Galleria Office Towers in Dallas, tapped its credit line to fund the 1.4 million-square-foot property's acquisition from CBRE Global Investors.

The Atlanta REIT, which aims to increase its credit line by $150 million, plans to structure its purchase as part of a reverse tax-deferred exchange. It's planning to use proceeds of its eventual sale of 1901 Market St. in Philadelphia to complete its exchange. It expects to generate a sizable gain from the sale of the 760,613-sf Philadelphia office property, which is fully leased through 2033 to Independence Blue Cross. So, structuring any proposed transaction as a tax-deferred exchange would eliminate its need to pay a special dividend to shareholders.

It's the same tactic the company used when it sold the 967,000-sf 500 West Monroe St. office property in Chicago to Spear Street Capital. Piedmont had taken over the property in 2011 by foreclosing against two mezzanine loans totaling $61.1 million against it....





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“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Dallas
  • States: Texas
  • Sector: Office
  • Subject: Property Acquisitions (ACQ), REITS -general (REITS)
  • Private: Yes
Read 165 times Last modified on Thursday, 20 February 2020

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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