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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):
January 3, 1996 (December 15, 1995)
TIAA REAL ESTATE ACCOUNT
(Exact name of registrant as specified in its charter)
New York 33-92990 Not Applicable
(State or other (Commission File No.) (IRS Employer
Jurisdiction of Identification No.)
incorporation)
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
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ITEM 5. OTHER EVENTS.
The TIAA Real Estate Account has recently purchased several
properties for its portfolio. The properties are described below.
MULTI-FAMILY RESIDENTIAL COMPLEXES
Brixworth Apartments -- Atlanta, Georgia
On December 28, 1995, the Real Estate Account purchased the
fee interest (i.e., ownership of underlying land and all
buildings and other improvements on the land) in Brixworth
Apartments, a first class garden apartment complex located in
Atlanta, Georgia, for a purchase price of approximately $15.6
million. The property is not subject to a mortgage.
Brixworth Apartments was built in 1989 and is located on
approximately 10.8 acres of land. The complex contains 271 one-
and two- bedroom apartment units in 11 three story buildings,
with each unit containing such amenities as a washer and dryer
and a patio or balcony. Building exteriors are brick and wood.
There are 420 parking spaces in the complex. Residents have use
of an on-site clubhouse, which includes a fitness center and
swimming pool. Brixworth Apartments is currently 97% occupied,
and according to the Seller, has experienced between 93% and 97%
occupancy over the prior five year period. Average monthly rents
are $699 per unit. Rents are comparable with competitive
communities and are not subject to rent regulation. The Account
will be responsible for the expenses of operating the property.
Brixworth Apartments is located in northeast Atlanta in
DeKalb County, near several shopping facilities and employment
centers. Atlanta has experienced positive population and
employment growth over the last 15 years and serves as the
financial and administrative center for the southeastern United
States.
The Greens at MetroWest Apartments -- Orlando, Florida
On December 15, 1995, the Real Estate Account purchased the
fee interest in The Greens at MetroWest, a luxury garden
apartment complex located in Orlando, Florida, for a purchase
price of approximately $12.5 million. The property is not
subject to a mortgage.
The Greens at MetroWest Apartments was built in 1990, and is
located on approximately 16.7 acres of land. The complex
consists of 200 one- and two- bedroom units in 27 two story
buildings, with each unit containing such amenities as a washer<PAGE>
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and dryer, a screened porch, and, in many of the units, a
fireplace and vaulted ceilings. Building exteriors are stucco
with concrete tiled roofs. There are 402 parking spaces in the
complex. Residents have use of an on-site clubhouse, which
includes an exercise facility and swimming pool. The complex is
currently 93% occupied, with monthly rents averaging $778 per
unit. Rents are comparable with competitive communities and are
not subject to rent regulation. The Account will be responsible
for the expenses of operating the property.
The complex is located in the 1,800 acre master planned
development of MetroWest which contains an 18 hole golf course.
Its proximity to several major highways gives residents easy
access to Orlando's major employment centers. Orlando has
experienced strong population and employment growth during the
last decade. While tourism and entertainment account for 40% of
local jobs, the region's economy is diversifying by attracting
"high-tech" industries and is growing in importance as a
warehouse and distribution location.
NEIGHBORHOOD SHOPPING CENTERS
Plantation Grove Shopping Center -- Ocoee, Florida
On December 28, 1995, the Real Estate Account purchased the
fee interest in Plantation Grove Shopping Center, a 73,655 square
foot neighborhood shopping center located near Orlando, Florida,
for a purchase price of approximately $7.3 million. The property
is not subject to a mortgage.
The center, built in 1995, is located on approximately 14
acres of land with space for 401 cars. It is currently 88%
occupied and is anchored by a 47,955 square foot Publix
supermarket, a regional supermarket chain. Rents, including a
rent guarantee from the seller for the 12% of vacant space,
average $10.00 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. Over the next five
years, leases on 16% of the center's space expire; those leases
together represent total annual rent payments of $162,900 in the
year of their expiration. The Publix lease expires in the year
2015.
The Orlando, Florida area is discussed in the description of
The Greens at MetroWest Apartments set forth immediately above.
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WAREHOUSES
On November 22, 1995, the Real Estate Account purchased the
fee interest in a warehouse property located near Minneapolis,
Minnesota for a purchase price of approximately $4.1 million.
Rents on the property, including a rent guarantee from the seller
for the 20% of vacant space, average $3.80 per square foot. On
December 22, 1995, the Account purchased leasehold interests
(i.e., interests in the leases on the underlying land and
ownership of the buildings and other improvements on the land) in
two warehouse properties located in El Paso, Texas for an
aggregate purchase price of approximately $4.4 million dollars.
Rents on the properties average $2.71 per square foot, after
payment of the ground rent. Although the terms vary under each
lease, most of the expenses for operating each of the properties
are either borne or reimbursed by the tenants. None of the
properties are subject to a mortgage.
Set forth below are further details relating to each
facility:
Lease
Building Year Current Major Expira-
Property Size Built Occupancy Tenants tion Date
(sq. ft.)
Fridley,
Minnesota
Industrial Blvd. 100,584 1995 80% Packaging 2005
Materials,
Inc.
El Paso, Texas
Butterfield warehouse 80,000 1980 100% Rockwell 2000
Zane Gray warehouse 103,600 1981 100% D.J. Inc. 2003
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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: January 3, 1996 By: /s/ Peter C. Clapman
________________________________
Peter C. Clapman, Senior Vice
President and Chief Counsel,
Investments
(Authorized Signatory)
