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 5, 1999 (June 30, 1998)
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
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ITEM 5. OTHER EVENTS.
The TIAA Real Estate Account (the "Account") has recently acquired
additional properties for its portfolio. The properties are described below.
INDUSTRIAL PROPERTIES
On June 30, 1998, the Account purchased four industrial buildings in three
master planned industrial parks located in the Chicago, Illinois metropolitan
area for a combined purchase price of approximately $31.8 million. The
properties total approximately 618,050 square feet.
On November 13, 1998, the Account purchased the UPS Distribution Facility in
Fernley, Nevada (outside of the Reno/Sparks area) for a purchase price of
approximately $10.9 million. The facility, a single-story warehouse/distribution
building, is approximately 256,000 square feet.
On December 17, 1998, the Account purchased two industrial buildings in Hebron,
Kentucky in the Cincinnati, Ohio metropolitan area for a combined purchase price
of approximately $25.1 million. The properties are located in the Park West
International master planned industrial park and total approximately 704,800
square feet.
On December 17, 1998, the Account purchased two industrial buildings in two
master planned industrial parks located in the Riverside-San Bernardino County
California metropolitan area for a combined purchase price of approximately
$36.3 million. The properties total approximately 971,935 square feet.
On December 17, 1998, the Account purchased two warehouse/distribution buildings
in Ontario, California for a purchase price of approximately $24.5 million. The
properties total approximately 627,670 square feet.
On December 18, 1998, the Account purchased the FedEx Distribution Facility in
Crofton, Maryland (outside of Washington, D.C.) for a purchase price of
approximately $7.8 million. The facility, a single-story warehouse/distribution
building, is approximately 111,193 square feet.
Set forth below are further details relating to each of these industrial
facilities:
<TABLE>
<CAPTION>
Building Clear
Size Year Parking Current Office Ceiling
Property (sq. ft.) Built Acreage Spaces Occupancy Finish Heights
- -------- --------- ----- ------- ------ --------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C>
Chicago, Illinois
Glen Pointe Business Pk.
Building V 117,600 1997 7.2 170 100% 17% 26 ft.
Building VII 92,543 1997 5.4 197 100% 27% 24 ft.
Woodcreek Business Pk.
Building III 149,907 1995 9.1 199 80%* 5% 26 ft.
Rockrun Business Pk.
Petco Building 258,000 1998 13.2 203 100% 3% 30 ft.
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Fernley, Nevada
UPS Distribution
Facility 256,000 1998 15 150 100% 3.3% 30 ft.
Hebron, Kentucky
Building C 520,000 1998 26.1 383 100% .8% 32 ft.
Building D 184,800 1998 11.5 161 90%* 10% 28 ft.
Ontario and Mira
Loma, California
Timberland Building 414,435 1998 20.1 459 100% 1.9% 30 ft.
Park Mira Loma West 557,500 1998 30.8 418 83%* 3% 30 ft.
Ontario, California
5200 Airport Drive 404,500 1997 25.5 428 100% 4.0% 30 ft.
1200 S. Etiwanda Ave. 223,170 1998 9.5 245 100% 2.5% 30 ft.
Crofton, Maryland
FedEx Distribution
Facility 111,193 1998 10 333 100% 8% 24 ft.
</TABLE>
- -----------------------------------------
* The Seller is providing a master lease for the vacant space (12 months for
the Petco Building, 18 months for the Hebron, Kentucky building, and 12
months for Park Mira Loma West).
Although the terms vary under each industrial property 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.
MULTI-FAMILY RESIDENTIAL PROPERTIES
Golfview Apartments - Lake Mary, Florida
On July 31, 1998, the Account purchased Golfview Apartments, a first-class
garden apartment complex located in Lake Mary, Florida (15 miles from downtown
Orlando) for a purchase price of approximately $28 million. The purchase
included an adjacent developable one acre land parcel. The property is not
subject to a mortgage.
Golfview Apartments was completed in 1998 and is located on approximately 31.6
acres of land. The complex contains 276 one, two, and three bedroom units in
eighteen two-story buildings, with such amenities as a swimming pool with a spa,
tennis courts, clubhouse and resident business center. The complex, which is in
the final stages of its initial lease-up, is currently 90% occupied with monthly
rents averaging $1,000 per unit. Rents are comparable with higher end
competitive complexes and are not subject to rent regulation. The Account is
responsible for the expenses of operating the property.
Indian Creek Apartments - Farmington Hills, Michigan
On October 8, 1998, the Account purchased the Indian Creek apartments, a first
class garden apartment complex located in Farmington Hills, Michigan (25 miles
from
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downtown Detroit), for a purchase price of approximately $17.0 million. The
property is not subject to a mortgage.
Indian Creek was built in 1988 and is located on 26.8 acres of land. The complex
contains 196 one and two bedroom units in fifteen two-story buildings, with such
amenities as clubhouse/leasing office with a fitness center, heated swimming
pool and tennis court and 396 parking spaces. The complex is currently 95%
occupied with monthly rents averaging $940 per unit. Rents are comparable with
competitive complexes and are not subject to rent regulation. The Account is
responsible for the expenses of operating the property.
Bent Tree Apartments - Columbus, Ohio
On October 22, 1998, the Account purchased the Bent Tree apartments, a first
class garden apartment complex located in Columbus, Ohio (20 miles from
downtown), for a purchase price of approximately $14.4 million. The property is
not subject to a mortgage.
Bent Tree was built in 1987 and is located on 21.6 acres of land. The complex
contains 256 one and two bedroom units in six two-story and four three-story
buildings. Amenities include a clubhouse/leasing office with a fitness center,
heated swimming pool, two tennis courts and 542 parking spaces. The complex is
currently 95% occupied with monthly rents averaging $685 per unit. Rents are
comparable with competitive complexes and are not subject to rent regulation.
The Account is responsible for the expenses of operating the property.
The Bay Court at Harbour Pointe - Mulkiteo, Washington
On December 17, 1998, the Account purchased The Bay Court at Harbour Pointe, a
first class garden apartment complex located in Mulkiteo, Washington (23 miles
from downtown Seattle), for a purchase price of approximately $35.1 million. The
property is not subject to a mortgage.
The Bay Court was built in 1991 and is located on 27.3 acres of land. The
complex contains 420 one, two and three bedroom units in twenty-seven
three-story buildings, with such amenities as two recreation buildings with a
leasing office, two heated swimming pools, a sports court and 744 parking
spaces. The complex is currently 92% occupied with monthly rents averaging $861
per unit. Rents are comparable with competitive complexes and are not subject to
rent regulation. The Account is responsible for the expenses of operating the
property.
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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 5, 1999 By: /s/ Peter C. Clapman
------------------------------
Peter C. Clapman,
Senior Vice President and
Chief Counsel, Investments
(Authorized Signatory)
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