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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
Date of Report (date of earliest event reported): July 10, 1996
CARRAMERICA REALTY CORPORATION
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(Exact name of registrant as specified in its charter)
Maryland 1-11706 52-1796339
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification
Number)
1700 Pennsylvania Avenue, N.W., Washington, D.C. 20006
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(Address of Principal Executive Offices) (Zip Code)
The Registrant's telephone number, including area code: (202) 624-7500
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 1. Changes in Control of Registrant.
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Not applicable.
Item 2. Acquisition or Disposition of Assets.
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Not applicable.
Item 3. Bankruptcy or Receivership.
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Not applicable.
Item 4. Changes in Registrant's Certifying Accountant.
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Not applicable.
Item 5. Other Events.
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CarrAmerica Realty Corporation (the "Company") has entered
into contracts to acquire ten office properties, certain land and an option to
acquire certain additional land in Austin, Texas for an aggregate purchase price
of approximately $100 million. The consideration for these acquisitions will be
paid through a combination of cash, repayment of seller indebtedness, issuance
of units of limited partnership interest in CarrAmerica Realty, L.P. and the
assumption of approximately $9.7 million in debt that bears interest at an
annual rate of 7.375% and matures in 1999. The ten office properties (the
"Littlefield Portfolio") contain approximately 894,000 square feet of space.
Seven of the office properties containing approximately 481,000 square feet of
space are located in suburban Austin's Northwest and Southwest sub-markets and
three of the office properties containing approximately 413,000 square feet of
space are located in Austin's central business district. As of June 30, 1996,
the office properties were 78% leased to over 100 tenants, including such major
tenants as Holt, Reinhart & Wilson, a publishing company (occupying 103,000
square feet or 12% of the total space), First USA, a credit card service
(occupying 65,000 square feet or 7% of the total space), and Blue Cross/Blue
Shield, an insurance company (occupying 32,000 square feet or 4% of the total
space). In addition, the Company will acquire land which will support the
development of up to approximately 730,000 square feet of office space and an
option to purchase land which will support the development of up to
approximately 750,000 square feet of office space, all of which land is located
in suburban Austin's Northwest sub-market. Closing of the transaction is
currently scheduled for late July 1996. The Littlefield Portfolio acquisition is
subject to completion of due diligence, approval by the Company's Board of
Directors, the obtaining of certain seller-related consents and the satisfaction
of certain other conditions, and there can be no assurance that this transaction
will be consummated.
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Encompassing such large corporate users as Microsoft, IBM and
Texas Instruments, Austin's office market contains approximately 20 million
square feet, with a vacancy rate of 20.4%, 18.0%, 14.9%, 12.4%, and 11.2% as of
December 31 in each of 1991 through 1995, respectively. The Company is
concentrating its acquisitions of office properties and land in two of Austin's
suburban sub-markets, the Northwest and Southwest sub-markets. The Northwest
sub-market contains approximately 8 million square feet of office space. Vacancy
rates in this sub-market were 19.8%, 14.6%, 10.5%, 6.7%, and 5.9% as of December
31 in each of 1991 through 1995, respectively. The Southwest sub-market contains
approximately 3 million square feet of office space. Vacancy rates in this
sub-market were 14.9%, 8.1%, 5.9%, 4.4% and 3.7% as of December 31 in each of
December 1991 through 1995, respectively. Austin's central business district
sub-market contains approximately 7 million square feet of office space. Vacancy
rates in this sub-market were 24.1%, 25.2%, 23.1%, 22.1% and 19.8% as of
December 31 in each of 1991 through 1995, respectively. (Market data has been
obtained from CB Commercial/Torto Wheaton Research.)
Item 6. Resignations of Registrant's Directors.
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Not applicable.
Item 7. Financial Statements and Exhibits.
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(a) Financial Statements.
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None.
(b) Pro forma financial information.
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None.
(c) Exhibits.
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None.
Item 8. Change in Fiscal Year
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Not applicable.
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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.
Date: July 10, 1996 CARRAMERICA REALTY CORPORATION
By: /s/ Brian K. Fields
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Brian K. Fields
Chief Financial Officer
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