News Release Exhibit 99.1
PS Business Parks, Inc.
701 Western Avenue
P.O. Box 25050
Glendale, CA 91221-5050
www.psbusinessparks.com
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For Release: Immediately
Date: December 27, 2001
Contact: Mr. Jack Corrigan
(818) 244-8080, Ext. 663
PS Business Parks, INC. announces the acquisition of a business park.
Glendale, California - PS Business Parks, Inc. (AMEX: PSB) acquired the
well-established business park known as Metro Park North in Rockville, Maryland
at a cost of approximately $127 million on December 27, 2001. The acquisition
was funded with the Company's existing cash and cash equivalents, line of credit
proceeds of $40 million and short-term borrowings of approximately $35 million.
The park consists of 17 buildings (903,000 square feet) including nine office
buildings (692,000 square feet) and eight flex-space buildings (211,000 square
feet).
The Park is located in the I-270 corridor which contains major concentrations of
Federal Government Agencies including the National Institutes of Health, the
Food and Drug Administration, the Department of Health and Human Services,
Department of Energy and major private employers including IBM, Lockheed Martin,
Host Marriott and Hughes Network Systems. The Park is approximately 95% occupied
with 10% of the square footage expiring through December 31, 2002. The largest
tenant is the U.S. Government, which occupies 224,000 square feet or 25% of the
Park.
This acquisition gives the Company a presence in the prestigious Rockville,
Maryland submarket and significantly increases its overall presence in the
Maryland/Northern Virginia market to approximately 4.4 million square feet. The
acquisition increases the Company's total square footage to 14.8 million
rentable square feet. The Company will continue to apply a disciplined approach
to its acquisition program while seeking additional acquisitions in this and
other markets across the country.
Company Information
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PSB is a self-advised and self-managed equity real estate investment trust
specializing in the ownership, management, acquisition, development and
redevelopment of business parks containing principally office "flex" space. The
Company defines "flex" space as buildings that are configured with a combination
of office and warehouse space and can be designed to fit an almost limitless
number of uses (including office, assembly, showroom, laboratory, light
manufacturing and warehouse under one roof). As of December 27, 2001, PSB had
interests in approximately 14.8 million net rentable square feet with
approximately 3,500 customers located in 9 states, concentrated primarily in
California (4,672,000 sq. ft.), Texas (2,983,000 sq. ft.), Oregon (1,973,000 sq.
ft.),Virginia (2,621,000 sq. ft.) and Maryland (1,769,000 sq. ft.).
Additional information about PS Business Parks, Inc. is available on the
Internet. The Company's web site is www.psbusinessparks.com.
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Forward-Looking Statements
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When used within this press release, the words "expects," "believes,"
"anticipates," "should," "estimates," and similar expressions are intended to
identify "forward-looking statements." Such forward-looking statements involve
known and unknown risks, uncertainties, and other factors, which may cause the
actual results and performance of the Company to be materially different from
those expressed or implied in the forward-looking statements. Such factors
include the impact of competition from new and existing commercial facilities
which could impact rents and occupancy levels at the Company's facilities, the
Company's ability to evaluate, finance, and integrate acquired and developed
properties into the Company's existing operations; the Company's ability to
effectively compete in the markets that it does business in; the impact of the
regulatory environment as well as national, state, and local laws and
regulations including, without limitation, those governing Real Estate
Investment Trusts; the impact of general economic conditions upon rental rates
and occupancy levels at the Company's facilities; the availability of permanent
capital at attractive rates, the outlook and actions of Rating Agencies and
risks detailed from time to time in the Company's SEC reports, including
quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form
10-K.