SOURCE: Franklin Street Properties Corp.

March 16, 2006 10:54 ET

Franklin Street Properties Corp. Enters Into Agreement to Acquire Portfolio of Five Properties

WAKEFIELD, MA -- (MARKET WIRE) -- March 16, 2006 -- Franklin Street Properties Corp. ("FSP") (AMEX: FSP) announced today that it has entered into an agreement to acquire a portfolio of five office properties held by five single-purpose entities (the "Target REITs") totaling approximately 1,115,612 square feet. The value of the portfolio is approximately $234.7 million. The acquisitions will be effected by merging each of the Target REITs with and into a wholly owned subsidiary of FSP. The Target REITs are FSP Willow Bend Office Center Corp., FSP Innsbrook Corp., FSP 380 Interlocken Corp., FSP Blue Lagoon Drive Corp., and FSP Eldridge Green Corp. The Target REITs were originally capitalized through private placement offerings to accredited investors by FSP's subsidiary, FSP Investments LLC. The properties being acquired are located in the greater Dallas, TX; Richmond, VA; Denver, CO; Miami, FL; and Houston, TX, markets, respectively. Consideration for the transaction will consist of shares of FSP common stock and, in certain instances, cash. Consummation of the transaction requires the affirmative vote of a majority in interest of the stockholders in each of the five Target REITs and is expected to occur on or about May 1, 2006. FSP has been advised in this transaction by A.G. Edwards & Sons, Inc. The Target REITs have been advised in this transaction by Cohen & Steers Capital Advisors, LLC. FSP expects to file a Current Report on Form 8-K with the SEC that will contain additional information about the transaction.

About Franklin Street Properties Corp.

Franklin Street Properties Corp. is a real estate investment trust based in Wakefield, Massachusetts, focused on achieving current income and long-term growth through investments in commercial properties. Since its origination in 1997, FSP has applied uncompromising discipline to its real estate investing. These disciplines have been learned over many years of property investment. FSP operates in two business segments: real estate operations and investment banking/investment services. FSP owns an unleveraged portfolio of real estate. The majority of FSP's property portfolio is suburban office buildings. FSP's subsidiary, FSP Investments LLC (member, NASD and SIPC), is a real estate investment banking firm and a registered broker/dealer. The primary activity of the investment bank is the organization of single purpose entities that acquire, own and operate specific real estate properties. FSP Investments LLC raises all of the capital required to fully equitize those entities through private placement offerings. To learn more about FSP please visit our website at www.franklinstreetproperties.com.

Forward-Looking Statements

Statements made in this press release that state FSP's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may also contain forward-looking statements based on current judgments and current knowledge of management, which are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Investors are cautioned that our forward-looking statements involve risks and uncertainty, including without limitation the risk that the mergers described in this press release will not be consummated in a timely manner, or at all. See the factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2005 under the caption, "Risk Factors." Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law.

Contact Information

  • Contact:
    Donna Brownell
    877-686-9496