City Office REIT is to acquire Lake Vista Pointe in Dallas, Texas for a purchase price of USD28.4 million.
Lake Vista Pointe is a 163,000 square foot office property in the growing Lewisville, Texas submarket.
The property was initially constructed to operate as a multi-tenant building in 2007 and subsequently became fully leased to Ally Financial through 2021.
The Lake Vista Pointe acquisition is anticipated to generate an initial full-year cash net operating income yield of approximately 7.8 per cent based on the purchase price with contractual annual rent escalations.
The major conditions to the acquisition have been satisfied and the transaction is anticipated to close in July 2014.
James Farrar, chief executive officer of City Office REIT, says: "The Dallas/Fort Worth market offers favourable economic trends for owners of office properties. It is forecasted by Moody's Economy.com to rank first in both population and job growth between 2012 and 2017. City Office REIT continues to review a strong pipeline of acquisition opportunities within our target markets and we remain focused on growing our portfolio and enhancing stockholder value."