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 15, 1997 (October 31, 1996)
TIAA REAL ESTATE ACCOUNT
(Exact name of registrant as specified in its charter)
New York 333-13477 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 additional properties for
its portfolio. The properties are described below.
MULTI-FAMILY RESIDENTIAL COMPLEXES
Royal St. George Apartments - West Palm Beach, Florida
On December 20, 1996, the Account purchased the fee interest in Royal St.
George Apartments, a first class garden apartment complex located in West Palm
Beach, Florida, for a purchase price of approximately $15.9 million. The
property is not subject to a mortgage.
Royal St. George Apartments was built in 1995 and is located on 10.4 acres of
land. The complex contains 224 one-, two- and three-bedroom units in 8 two- and
three-story buildings, with each unit containing such amenities as a washer and
dryer, patio or solarium, and a security system. Upper level units contain
vaulted ceilings. Building exteriors are stucco with tile roofs. There are 388
parking spaces plus 64 detached garages. Residents have use of an on-site
clubhouse, a fully equipped exercise center, swimming pool and two lighted
tennis courts. The complex is currently 94% occupied with monthly rents
averaging $834 per unit. Rents are comparable with competitive complexes and are
not subject to rent regulation. The Account will be responsible for the expenses
of operating the property.
Royal St. George Apartments is located three miles south of the West Palm
Beach central business district. The West Palm Beach metropolitan area, with a
current population of almost one million persons, has experienced population
growth over the past five years that is more than twice the national rate. This
growth is expected to continue.
Westcreek Apartments - Westlake Village, California
On January 2, 1997, the Account purchased the fee interest in Westcreek
Apartments, a luxury garden apartment complex located in Westlake Village,
California, for a purchase price of approximately $13.0 million. The property is
not subject to a mortgage.
Westcreek Apartments was built in 1988 and is located on approximately 10.4
acres of land. The complex contains 126 one- and two-bedroom units in 11
two-story buildings, with each unit containing such amenities as a microwave
oven, fireplace, washer and dryer and nine foot ceilings. Building exteriors are
stucco with tile roofs. There are 128 covered parking spaces plus 76 uncovered
parking spaces. Residents have use of an on-site clubhouse with a fully equipped
weight room and a swimming pool.
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The complex is currently 94% occupied with monthly rents averaging $1,090 per
unit. Rents are comparable with competitive complexes and are not subject to
rent regulation. The Account will be responsible for the expenses of operating
the property.
Westlake Village is located approximately 38 miles northwest of downtown Los
Angeles in Ventura County. Ventura County has enjoyed above-average population
growth during the last five years and this growth is expected to continue into
the foreseeable future.
INDUSTRIAL PROPERTIES
Arapahoe Park East - Boulder, Colorado
On October 31, 1996, the Account purchased the fee interest in five research
and development buildings located in Boulder, Colorado, for a purchase price of
approximately $9.9 million. Rents on the buildings, which together have 129,425
square feet of rentable space, average $8.83 per square foot. The buildings are
not subject to a mortgage.
The buildings, built between 1979 and 1982, are located on approximately 6.46
acres of land with space for 332 cars. Ball Aerospace Corp., a leading aerospace
and telecommunications equipment manufacturer, leases 100% of the five buildings
under leases which expire over the three year period from 1998 to 2000. Boulder
is located 25 miles northwest of Denver, the largest city in the seven-state
Rocky Mountain region and the capital of Colorado. The population of the Denver
metropolitan area, which includes Boulder, has grown steadily during the past
ten years and is expected to continue to expand into the near future. Boulder's
economy has been strengthened in recent years by the establishment of several
high tech firms in the area, which have attracted a highly-educated and skilled
labor force.
Interstate Crossing - Eagan, Minnesota
On December 31, 1996, the Account purchased the fee interest in two
industrial buildings located in Eagan, Minnesota, for a purchase price of
approximately $6.4 million. Rents on the buildings, which together have 131,380
square feet of rentable space, average $5.10 per square foot. The buildings are
not subject to a mortgage.
The buildings, built in 1995, are located on approximately 10.6 acres of land
with space for 288 parking spaces. The buildings are presently 100% leased to 10
tenants, with the majority of leases expiring in 2000 and 2001.
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The subject property is located 10 miles southeast of downtown Minneapolis
and 7 miles south of downtown St. Paul. The twin cities of Minneapolis -- St.
Paul currently have a population of 2.7 million people and enjoy a strong and
diverse economy.
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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 15, 1997 By: /s/ Peter C. Clapman
Peter C. Clapman, Senior Vice
President and Chief Counsel,
Investments
(Authorized Signatory)
