CA Inc. Agrees to $204 Million Sale Leaseback of Long Island HQ

CoStar Web Site - August 24, 2006

Software firm CA Inc. (NYSE:CA) agreed to a sale-leaseback of its world headquarters at One CA Plaza in Islandia, NY, to private investors Island Headquarters Operators LLC and Islandia Operators LLC for $204.3 million, or approximately $262.50 per square foot. CRIC Capital LLC, in partnership with Boston, MA-based Prudential Real Estate Investors, manages the investment group.

The leaseback portion of the agreement included a 15-year term with an option for CA to renew the term up to 35 years, according to a filing with the U.S. Securities and Exchange Commission. The monthly base rent is $1.26 million with an annual increase of .78% through year 11. After year 11, the rent will remain constant until the initial term expires.

The Long Island campus is a 60-acre site that includes three connected buildings totaling approximately 778,000 rentable square feet. The Class A complex includes: Central Tower, with six-stories and a lower level, a two-story Annex Building and a two-story Atrium Building. The 14-year-old property went through an upgrade, expansion and partial renovation in 1999.

Jones Lang LaSalle's Washington, DC capital markets team, assisted by JLL's Manhattan capital markets team, worked with CA on the sale-leaseback of the property. Sphere: Related Content