TIER REIT Inc., a Dallas-based real estate investment trust that specializes in owning and operating office properties in select U.S. markets, announced financial and operating results for the fourth quarter and full year.
At the same time, the REIT announced it is downsizing its Houston and Fort Worth portfolios and has Centreport Office Center in Fort Worth under contract to sell. Centreport Office Cemyrt has approximately 133,000 rentable square feet. These properties are under contracts for an aggregate anticipated sales price of approximately $145 million, according to TIER REIT.
“We exited five markets during 2017,” said Scott W. Fordham, President & CEO, “and we announced today that we are under contract on 500 East Pratt in Baltimore, Loop Central in Houston, and Centreport Office Center in Fort Worth. Exiting Baltimore and downsizing our Houston and Fort Worth portfolios will further our continued efforts to sharpen our geographic footprint and improve the overall quality of our portfolio.”
Fordham said that, subject to normal closing conditions, TIER REIT will complete the transactions during the first quarter.
Fordham said the REIT is putting a strong focus on Austin, where the company recently acquired Domain Point. Domain Point consists of two office buildings that total approximately 240,000 square feet on over 9.5 acres of land. As a component of the acquisition, TIER REIT has the exclusive rights to rebrand and include the property as part of The Domain, a high-profile new development in southwest Austin. That brings TIER REIT’s total Austin office ownership to over 2.1 million square feet, including properties under construction that are over 95 percent leased, according to Fordham.
“We’ve always known Austin is a special city,” said Fordham, “and we are pleased to see its prominence grow not only within our portfolio, but also as one of the nation’s most desirable places to live, work and play. Our existing ability to develop at least 1.2 million square feet inside The Domain, plus future redevelopment opportunities, positions us for significant additional value creation opportunities within Austin.”
