Almost 3 years later Get 541,000 square feet CoreCivic sold its Social Security Administration office building on the outskirts of Baltimore for $ 242 million and sold its stake in SSA Baltimore Holdings LLC, the company’s wholly owned subsidiary and real estate owner.
CoreCivic did not announce the price of the building at 6100 Wabash Ave. in Reisterstown, Maryland, but said the Baltimore SSA building and two additional properties totaled $ 326 million. Other assets sold at the beginning of the second quarter were the Capital Commerce Center, a 277,000-square-foot office building on 2601 South Blair Stone Road in Tallahassee, Florida, and 217,000-square-foot. National Archives and Administration warehouse at 8801 Kingsridge Drive in Miami Township, Ohio. All three properties were purchased in separate transactions in 2018 for a total of $ 293.6 million.
In a prepared statement, Damon Hininger, president and CEO of CoreCivic, based in Brentwood, Tennessee, said the sale of the three assets was part of the company’s plans to strengthen its balance sheet. According to Hininger, the company generated approximately $ 30 million in net revenue from the sale of 42 non-core government rental assets in the fourth quarter of 2020. Including these sales, the company said it exceeded the target net revenue from the sale of up to $ 150 million in non-core assets announced in August 2020 in connection with its decision to cancel its election as a REIT. ..
At the same time as the sale of the three properties, CoreCivic used total revenue of $ 194.4 million to fully repay the two non-recourse mortgage bills associated with SSA-Boltimore and the Capital Commerce Center. The total outstanding balance of nonrecourse mortgage bonds, both of which had interest rates of 4.5%, was $ 161.9 million on the date of sale. The sale of three non-core real estate properties rented by the government generated approximately $ 130 million in net income after repayment of non-recourse mortgages and other costs.
CoreCivic acquired the SSA Baltimore property from an affiliate of JBG Cos in September 2018. JBG partnered with Klein Enterprises to develop the building in 2012 and rent it to the Social Security Administration for 20 years under a contract that expires in January. 2034. At the time of the acquisition, Hininger said the company was expanding its portfolio of government-leased real estate assets and was attracted to the opportunity to acquire high-quality, transit-oriented real estate leased to the federal government over the long term. I did. Term contract.
In January 2020, CoreCivic completed the acquisition of a portfolio of 28 properties. Lease to federal government For about $ 83.2 million through the General Procurement Department. The 445,000-square-foot portfolio included buildings occupied by several government agencies, including the Social Security Administration and the Department of Homeland Security. The property is located in Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, and Tennessee.
CoreCivic sells 3 for $ 326 million
https://www.commercialsearch.com/news/corecivic-sells-3-for-326m/ CoreCivic sells 3 for $ 326 million