SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
August 11, 1999 (July 15, 1999)
TIAA REAL ESTATE ACCOUNT
(Exact name of registrant as specified in its charter)
New York 33-92990, Not Applicable
(State or other 333-13477 and (IRS Employer
Jurisdiction of 333-22809 Identification No.)
incorporation) (Commission File Nos.)
c/o Teachers Insurance and Annuity
Association of America
730 Third Avenue
New York, New York 10017-3206
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 490-9000
ITEM 5. OTHER EVENTS.
The TIAA Real Estate Account (the "Account") has recently acquired several
additional office properties for its portfolio, as described below.
One Monument Place - Fairfax, VA
On July 15, 1999, the TIAA Real Estate Account purchased an 8-story office
building in Fairfax, Virginia (20 miles from Washington, DC) for a purchase
price of approximately $34,450,000. The property is not subject to a mortgage.
One Monument Place, which was built in 1990, is located within the Fairfax
Center office submarket in Northern Virginia adjacent to the Fair Oaks Mall. It
contains approximately 219,211 rentable square feet, and is situated on
approximately 6.73 acres with 718 parking spaces. The building is approximately
93% leased to various tenants, with rents averaging $20.70 per square foot.
Although the terms vary under each lease, most of the expenses for operating the
property are either borne or reimbursed by the tenants. The Fairfax Center
submarket contains 5.7 million square feet of office space and presently has a
vacancy rate of 1.4%.
88 Kearney Street - San Francisco, CA
On July 22, 1999, the Account purchased a 21-story office building in San
Francisco, CA for a purchase price of approximately $65,914,000. The property is
not subject to a mortgage.
88 Kearney Street, which was built in 1986, is located within the financial
district submarket of downtown San Francisco. It contains 209,476 rentable
square feet, and is currently approximately 88% occupied by various tenants,
although building occupancy was 94% in April 1999, after which time several
small tenants moved. Charles Schwab & Company subleases or leases approximately
37% of the building, with its sublease for 49,564 square feet of office space
expiring in 2001. Rents average $38 per square foot, as compared with the $46
per square foot average for financial district office space. Although the terms
vary under each lease, most of the expenses for operating the property are
either borne or reimbursed by the tenants. The downtown San Francisco financial
district contains 39 million square feet of office space and presently has a
vacancy rate of 3.9%.
10 Waterview Boulevard - Parsippany, NJ
On July 27, 1999, the Account purchased a 3-story office building in
Parsippany, NJ (Morris County) for a purchase price of approximately
$30,950,000. The property is not subject to a mortgage.
10 Waterview Boulevard, which was built in 1984 as part of the Waterview
Corporate Center, is located in northern New Jersey, approximately 22 miles from
Newark and 40 miles from midtown Manhattan. It contains approximately 213,386
rentable square feet, and is situated on approximately 18.57 acres with 757
parking spaces. The building is approximately 93% leased to various
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tenants, with rents averaging $22.28 per square foot. Although the terms vary
under each lease, most of the expenses for operating the property are either
borne or reimbursed by the tenants. The Parsippany office market contains 9.5
million square feet of office space and presently has a vacancy rate of 9.7%.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TIAA REAL ESTATE ACCOUNT
By: TEACHERS INSURANCE AND ANNUITY
ASSOCIATION OF AMERICA
Date: August 11, 1999 By: /s/ Peter C. Clapman
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Peter C. Clapman,
Senior Vice President and Chief Counsel,
Investments
(Authorized Signatory)
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