EPA Regional HQ in Denver Sold for $91.3 Million

Government Properties Trust Web Site - December 21, 2006

Government Properties Trust, Inc. (NYSE: GPT), a self-managed, self-administered real estate investment trust, today announced that it has completed the acquisition of the Environmental Protection Agency (EPA) building at 1595 Wynkoop Street, Denver, Colo., for approximately $91.3 million in accordance with the terms of the Purchase and Sales Agreement.

The newly constructed, 280,000 square foot, nine story building is located in the Lower Downtown Historic District in Denver. The General Services Administration on behalf of the EPA has executed a 10-year lease. Approximately 15,000 square feet of the building will be available for street level retail space. The property includes 225 on-site underground parking stalls. The property will serve as the regional headquarters for the EPA.

The anticipated operating expenses for the property are estimated at $6.1 million, which includes $3.3 million for depreciation and amortization and $70,000 for reserves. Annual revenue, after the building is fully leased, is expected to be $9.4 million.

Simultaneous with the property acquisition, a mortgage financing was completed for $68.5 million. The mortgage bears a fixed interest rate of 6.19 percent and is interest only for the first two years. The mortgage is amortized for 30 years with a ten year term. Sphere: Related Content