Trizec Properties, Inc.

Trizec Properties, Inc.

July 21, 2005 08:30 ET

Trizec Announces Downtown Los Angeles Property Acquisition; Acquires the Prominent Figueroa at Wilshire Office Building

CHICAGO--(CCNMatthews - Jul 21, 2005) -

Trizec Properties, Inc. (NYSE:TRZ) today announced the acquisition of the 100 percent fee simple interest in Figueroa at Wilshire, a 1,039,000-square-foot office property located in the Central Business District (CBD) of Los Angeles, for $356.7 million from a joint venture of Hines and DIFA (Deutsche Immobilien Fonds AG). The transaction closed on July 20, 2005.

Completed in 1990 and located at 601 South Figueroa Street, the property is a 52-story, Class A office building prominently situated at the high-profile intersection of Figueroa Street and Wilshire Boulevard, with exceptional visibility and access to and from the Harbour (110) Freeway. Designed by Albert C. Martin & Associates, the landmark property's exterior is clad in Brazilian Rose polished granite, accented with bronze panels, and complemented by gray-glazed windows. The attractive lobby incorporates two 75-foot high atria with granite walls and floors, custom bronze chandeliers and award-winning lush tropical landscaping. The property features an open-air plaza distinguished by a 36-foot tall sculpture that features two bronze columns combining water and fire. The property also provides a five-level subterranean parking structure with 778 spaces and other on-site amenities including an upscale restaurant, a full service commercial bank and various business services. The property is currently 87 percent occupied. Figueroa at Wilshire has received numerous awards, including the commercial real estate industry's most prestigious honor: BOMA's "International Building of the Year."

Tim Callahan, Trizec's President and Chief Executive Officer commented, "By acquiring this world-class property, we have been able to further execute our strategy to build a strong portfolio concentration in a targeted submarket. This scale allows us to offer current and prospective tenants a variety of space options to meet their requirements. Furthermore, the downtown Los Angeles renaissance has transformed the area into a vibrant 24-hour urban environment and we are committed to being a significant player in this very dynamic market."

Brian Lipson, Trizec's Executive Vice President and Chief Investment Officer added, "Figueroa at Wilshire is considered to be the preeminent office building in downtown Los Angeles and has historically outperformed the market in terms of occupancy and rental rates. With two known lease expirations occurring around year-end that account for approximately 29 percent of the building, Trizec looks forward to taking advantage of the improving office fundamentals in the downtown market. The high-quality construction coupled with efficient floor plates, exceptional views, a prestigious business address and possible signage rights, provides Figueroa at Wilshire the opportunity to attract the top tenants in the Los Angeles area."

Trizec's Los Angeles area portfolio now totals 4.5 million square feet consisting of three downtown properties, Figueroa at Wilshire, Bank of America Plaza and Ernst & Young Plaza, totaling 3.7 million square feet as well as Landmark Square in Long Beach and Marina Towers in Marina Del Rey, totaling 824,000 square feet.

Trizec Properties, Inc., a real estate investment trust (REIT) headquartered in Chicago, is one of the largest owners and operators of commercial office properties in the United States. The Company has ownership interests in and manages a high-quality portfolio of 53 office properties totaling approximately 38 million square feet concentrated in the metropolitan areas of seven major U.S. cities. The Company trades on the New York Stock Exchange under the symbol TRZ. For more information, visit Trizec's web site at or call toll free at 1 (800) 891-7017.

This release contains forward-looking statements, within the meaning of the federal securities laws, relating to our business and financial outlook which are based on our current expectations, beliefs, projections, forecasts, future plans and strategies, and anticipated events or trends. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or the negative of these terms or other comparable terminology. These forward-looking statements are not guarantees of future performance and financial condition. Forward-looking statements are not historical facts. Instead, such statements reflect estimates and assumptions and are subject to certain risks and uncertainties that are difficult to predict or anticipate. Therefore, actual outcomes and results may differ materially from those projected or anticipated in these forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements, including, without limitation, the risks described in our annual report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2005, as the same may be supplemented from time to time. These factors include, without limitation, the following: changes in national and local economic conditions, including those economic conditions in our seven core markets; the extent, duration and strength of any economic recovery; our ability to maintain occupancy and to timely lease or re-lease office space; the extent of any tenant bankruptcies and insolvencies; our ability to sell our non-core office properties in a timely manner; our ability to acquire office properties selectively in our core markets; our ability to maintain REIT qualification and changes to U.S. tax laws that affect REITs; Canadian tax laws that affect treatment of investment in U.S. real estate companies; the competitive environment in which we operate; the cost and availability of debt and equity financing; the effect of any impairment charges associated with changes in market conditions; our ability to obtain, at a reasonable cost, adequate insurance coverage for catastrophic events, such as earthquakes and terrorist acts; and other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission.

Contact Information

  • Trizec Properties, Inc., Chicago
    Dennis C. Fabro, 312-798-6290