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.
/CONTACT: Elizabeth Drucker, Manager, Investor Relations, of
/TriNet press releases available through Company News On-Call by
fax, 800-758-5804, ext. 891913, or at http://www.prnewswire.com/
CO: TriNet Corporate Realty Trust Inc.
ST: California, Illinois, Louisiana
-0- (PRN) May/02/96 8:15
EOS (PRN) May/02/96 08:15 86
-0- (PRN) May/02/96 8:30
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