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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):
August 30, 2000 (June 15, 2000)
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 following describes several recent property purchases by the TIAA Real
Estate Account (the "Account").
OFFICE PROPERTIES
MORRIS CORPORATE CENTER III - PARSIPPANY, NJ
On July 12, 2000, the Account purchased four, four-story class A office
buildings located in Parsippany, New Jersey (Morris Corporate Center III) for a
purchase price of approximately $103.1 million. The property is not subject to a
mortgage.
Morris Corporate Center III was built in 1990. The buildings contain
525,154 net rentable square feet and are currently 98% occupied by 17 tenants.
The three largest tenants are: Warner Lambert (115,517 square feet), AIG
(114,948 square feet) and AT&T (80,845 square feet). Rental rates at the
property average $23.40 per square foot, which is below current market rates for
comparable properties in the Parsippany office market. Although the terms vary
under each lease, most of the expenses for operating the property are either
borne or reimbursed by the tenants. The property is located in the Parsippany
office market, which is comprised of 10.1 million square feet with a vacancy
rate of 6.1%.
TYSONS EXECUTIVE PLAZA II - MCLEAN, VA
On July 11, 2000, the Account purchased a 10-story office building in
McLean, Virginia for a purchase price of approximately $49.25 million. Shortly
following this purchase, the Account entered into a joint venture with the
Tennessee Consolidated Retirement System, selling it a 50% interest in the
property. The property is not subject to a mortgage.
Tysons Executive Plaza II was built in 1988, and it contains 252,552 net
rentable square feet. The building is currently 100% occupied by 7 tenants. The
three largest tenants are Nortel Networks Corporation (149,426 square feet),
Innovative Logistics Techniques, Inc. (43,957 square feet) and Venable, Baetjer
& Howard, LLP (28,513 square feet). Rents average $22.91 per square foot, which
is below current market rates for comparable properties in the Tysons Corner
submarket of Northern Virginia. Although the terms vary under each lease, most
of the expenses for operating the property are either borne or reimbursed by the
tenants. The Tysons Corner submarket of Northern Virginia contains 21 million
square feet with an overall vacancy rate of 2.7%.
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INDUSTRIAL PROPERTIES
NORTHPOINTE COMMERCE CENTER - FULLERTON, CA
On June 15, 2000, the Account purchased five industrial buildings
located in Fullerton, California (Northpointe Commerce Center) for a purchase
price of approximately $35.5 million. The Account has plans to purchase a
sixth building for a purchase price of approximately $3.2 million in
September 2000. The property is not subject to a mortgage.
Northpointe Commerce Center was built over a period from 1990 to 1994. The
property contains 612,023 net rentable square feet and is currently 100%
occupied by 7 tenants. The two largest tenants are: Day Runner, Inc. (221,293
square feet) and the State of California (157,157 square feet). Rental rates at
the property average $6.09 per square foot, which is slightly below market
rental rates of comparable properties in the North Orange County industrial
market. Although the terms of each lease vary, most of the expenses for
operating the property are either borne or reimbursed by the tenants. The
property is located in the North Orange County industrial market, which is
comprised of 95.2 million square feet with a vacancy rate of 5.1%.
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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: August 30, 2000 By: /s/ Lisa Snow
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Lisa Snow
Vice President and Chief Counsel,
Corporate and Insurance Law
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