AUSTIN–(BUSINESS WIRE)–CIM Commercial Trust Corporation (NASDAQ: CMCT and TASE: CMCT-L) announced today that its Penn Field property located at 3601 South Congress Avenue in Austin, Texas is now approximately 97% leased, up from approximately 85% in third quarter of 2021. In the fourth quarter 2021, three leases were executed at Penn Field including a 10-year, 20,532-square-foot lease with a premier technology company. Subsequent to signing this lease, this technology company exercised its right to take additional space that would increase the property to 99% leased.
Penn Field, an approximately 228,000-square-foot, 16-acre, mixed-use property located in Austin’s “SoCo” Business District, was originally developed in 1918 as an air base for the U.S. Army. The industrial buildings of post-World War I design have been transformed over time into what is today, a lushly landscaped campus with meandering pathways shaded by mature trees. The property has a diverse tenant base including technology, media, and entertainment companies.
CMCT acquired the creative office campus in 2007 and during its ownership, in-place rents have increased more than threefold. In 2020, CMCT completed a new $15 million, 44,000-square-foot, two-story office building at the Penn Field office campus and leased the entire building to F45 Training for its new corporate headquarters. The return on cost of this $15 million development (based on the first year of stabilized net operating income) is expected to approximate 11% and contribute $0.03 per share in annualized funds from operations.
About CIM Commercial Trust Corporation (“CMCT”)
CMCT is a real estate investment trust that primarily owns and operates Class A and creative office real assets in vibrant and improving metropolitan communities throughout the United States. CMCT, supported by the broad real estate capabilities of CIM Group, seeks to focus on the acquisition, ownership, operation and development of cash flowing creative office, multifamily, retail, parking, infill industrial and limited service hospitality real assets in communities qualified by CIM Group. CMCT is operated by affiliates of CIM Group, L.P., a vertically-integrated owner and operator of real assets with multi-disciplinary expertise and in-house research, acquisition, credit analysis, development, finance, leasing, and onsite property management capabilities. (www.cimcommercial.com).
