OFFICE PROPERTY; SELLS ONE LOUISIANA RETAIL PROPERTY SAN FRANCISCO, May 2 /PRNewswire/ -- TriNet Corporate Realty Trust, Inc. (NYSE: TRI) announced today that Komatsu America International Company has agreed to sublease 100 percent of the Illinois office property that TriNet currently leases to PNC Mortgage Corporation of America, Inc. In addition, Komatsu has signed a new lease which, combined with its sublease, provides a minimum period of tenancy of 10 years until July 31, 2006. TriNet also reported that it sold one Louisiana retail store net leased to Schwegmann Giant Super Markets, Inc. for a sale price of $1.3 million. The 102,208 sq. ft. office building located in Vernon Hills, Illinois was PNC Mortgage's corporate headquarters and will now serve as the headquarters for Komatsu America International Company, an affiliate of the Japanese corporation, Komatsu Ltd. Komatsu is an international leader in the manufacture of construction equipment and industrial machinery, with 1995 international sales in excess of $10.5 billion. The term of the sublease will commence on July 29, 1996 and end on October 31, 2002, co-terminus with the expiration of the primary term of PNC Mortgage's lease. Komatsu also has executed a new lease with TriNet which commences November 1, 2002 and expires July 31, 2006. PNC Bank Corporation's obligations under the primary lease will remain in effect during the term of the sublease. "This transaction demonstrates the importance of TriNet's focus on acquiring high quality, general purpose buildings that can be easily re-tenanted," said Mark Whiting, president of TriNet. Whiting said that TriNet was able to add four years to the original lease term without incurring tenant improvement or leasing commission costs due to the high quality and flexible design of the Illinois property. In addition, the new extended lease includes continuing rent escalations. "Because of the long lease terms typical to TriNet's properties," said Whiting, "we have substantial lead time to work with our tenants should their real estate needs change, as was the case with PNC." PNC had outgrown the Vernon Hills office property but still had several years left on its lease with TriNet. Due to TriNet's flexibility, PNC is now able to relocate to a larger building without having to pay double rent. The new tenant, Komatsu, also benefited from the arrangement, as it found a suitable headquarters building in the location it wanted with the minimum ten-year lease term it required. In another transaction, TriNet sold a retail store located in Metairie, Louisiana for $1.3 million. TriNet expects to recognize a modest gain from the sale of this property, which was net leased to Schwegmann Giant Super Markets, Inc. TriNet used the sale proceeds to pay down $0.95 million on one of its mortgage loans and added the remainder to working capital. TriNet Corporate Realty Trust, Inc. is a real estate investment trust specializing in the acquisition and management of predominantly office and industrial properties net leased to corporations nationwide, including strategically important distribution and headquarters locations. TriNet's triple net leases typically provide that its tenants pay for most or all property operating expenses, while contractual rental income escalates. TriNet's portfolio consists of 101 properties comprising approximately 12 million sq. ft. in 25 states, all of which are 100 percent leased by a diverse group of U.S. corporations. -0- 5/2/96 /CONTACT: Elizabeth Drucker, Manager, Investor Relations, of TriNet, 415-391-4300/ /TriNet press releases available through Company News On-Call by fax, 800-758-5804, ext. 891913, or at http://www.prnewswire.com/ (TRI) CO: TriNet Corporate Realty Trust Inc. ST: California, Illinois, Louisiana IN: SU: -0- (PRN) May/02/96 8:15 EOS (PRN) May/02/96 08:15 86 â -0- (PRN) May/02/96 8:30
TRINET OBTAINS LEASE EXTENSION AND NEW TENANT FOR ILLINOIS
Press spacebar to pause and continue. Press esc to stop.