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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
March 29, 2000 (Date of earliest event reported)
CORNERSTONE PROPERTIES INC.
(Exact name of Registrant as specified in its charter)
Nevada 1-12861 74-2170858
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
Cornerstone Properties Inc.
Tower 56
126 East 56th Street
New York, NY 10022
(Address of principal executive offices)
(212) 605-7100
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On March 5, 2000, Cornerstone Properties Inc. ("Cornerstone") posted
certain supplementary information regarding its financial condition and
operations as well as operating data with regard to properties owned by
Cornerstone on its web site at www.cstoneprop.com. The information attached
hereto as Exhibit 99.1 was posted on the Cornerstone web site on March 29, 2000
and updates certain development information contained in the previously posted
supplementary information.
The foregoing description is qualified in its entirety by reference to
the complete text of the materials filed as Exhibit 99.1 to this current report
on Form 8-K, which is incorporated by reference herein in its entirety.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
Exhibit Number Exhibit Description
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99.1 Text of materials dated March 29, 2000.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
Cornerstone has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CORNERSTONE PROPERTIES INC.
(Registrant)
Date: April 4, 2000 By: /s/ Kevin P. Mahoney
------------------------------------------
Name: Kevin P. Mahoney
Title: Senior Vice President and Chief
Financial Officer
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EXHIBIT INDEX
Exhibit Number Exhibit Description
-------------- -------------------
99.1 Text of materials dated March 29, 2000.
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Exhibit 99.1
CORNERSTONE PROPERTIES INC.
PROPERTY DEVELOPMENT SUMMARY
<TABLE>
<CAPTION>
========================================================================================================================
Asset Size Construction Total Actual Cost Projected Cost Leasing Expected GAAP
------------------ Estimated as of to Complete Status Return Return
Costs(**) 12/31/99 as of (***)
3/30/00
Start Estimated
Placed in
Service
Date(*)
========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(1)U.S. Banc Corp 929,000 4/98 2Q 00 $168,000 $168,000 $167,832,000 79.0% 9.30% 9.3%
Center,
Minneapolis, MN
========================================================================================================================
(2)Seaport Plaza, 160,000 8/99 4Q 00 $40,100,000 $17,029,000 $23,071,000 100.0% 12.21% 14.0%
Redwood City, CA
========================================================================================================================
(3)Parkside Towers, 398,000 1Q 00 4Q 01 $132,300,000 $38,437,000 $93,863,000 96% 14.50% 17.5%
Foster City, CA
========================================================================================================================
(4)First and Howard, 1,169,000 6/00 tbd $365,000,000 $2,571,000 $362,429,000 0.0% 10.90% 11.8%
San Francisco, CA
========================================================================================================================
(5)Concar, 200,000 4/00 3Q 01 $52,300,000 $1,598,000 $50,702,000 0.0% 13.60% 18.6%
San Mateo, CA
========================================================================================================================
(6)Ferry Building, 216,000 1/01 3Q 02 $57,400,000 $2,766,000 $54,634,000 0.0% 13.20% 14.2%
San Francisco, CA
========================================================================================================================
(7)Larkspur Landing, 168,000 4/02 2Q 03 $43,300,000 $498,000 $42,802,000 0.0% 10.70% 11.4%
Larkspur, CA
========================================================================================================================
========================================================================================================================
TOTAL 3,240,000 $858,400,000 $63,067,000 $795,333,000
========================================================================================================================
</TABLE>
Notes:
(1) Take-out Project: Pre-sale with the Ryan Companies.
(2) Wholly-owned: 100% pre-leased to a public software company for a twelve
year lease term.
(3) Wholly-owned: Project features 381,000 rsf office, 17,000 retail, three
levels of parking and a once-acre park. 100% of office space has been
leased to a public software company.
(4) Joint Venture: the First & Howard urban campus will consist of 4 separate
buildings. Each of the phases will involve one or two JV partners. The
Cornerstone weighted average ownership of the entire project is anticipated
to be 68%.
(5) Wholly-owned: 69-year ground lease with a participation feature. The
completion costs above assumes an imputed land value of $7.5 million.
(6) Joint Venture: Ferry Building is a 65 year master lease that provides for a
50% participation to the Port after receipt by Cornerstone of an 11% return
on equity.
(7) Joint Venture: Larkspur Landing is a joint venture project with Campus
Properties which will include two office buildings, a hotel and a shared
parking facility. The joint venture expects to sell off the hotel portion
of the property. Campus will receive a promoted share of the cash flow
above a cumulative preferred return to equity. After 5 years, Cornerstone
has the option to acquire Campus' position by capitalizing the then-current
rent and paying Campus its share of the value in excess of costs.
* The estimated placed in service date represents the date the certificate of
occupancy has been or is anticipated to be obtained. Subsequent to
obtaining the certificate of occupancy, the property will undergo a lease
up period, if it is not 100% pre-leased.
** Total estimated costs include amounts attributable to tenanting the
property.
*** Before any partnership cash flow splits.
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This website contains forward-looking statements within the meaning of the
Federal securities laws. Forward-looking statements are inherently subject to
risks and uncertainties, many of which cannot be predicted with accuracy, that
could cause the actual results, performance or achievements of Cornerstone to
differ materially from those reflected in such forward-looking statements.
Information contained in this website regarding current and future market
conditions is based on Cornerstone's assessment of real estate markets as of
this date and is subject to the uncertainties inherent in such an assessment. In
particular, but not exclusively, national and regional economic conditions, the
rate of new construction, and demand and supply in a given market will affect
leasing activity, projected rents and the cost of lease renewals. Please see our
SEC 10-Q and 10-K filings for updates to this list of risks and uncertainties.
