DALLAS--(BUSINESS WIRE)--

TIER REIT, Inc. (NYSE: TIER), a Dallas-based real estate investment trust, announced today that the Company has completed the sale of an interest in the entity that indirectly owns the Wanamaker Building as well as a sale of its Buena Vista Plaza office building.

The Wanamaker Building is a mixed-use property located in Center City Philadelphia with approximately 1.4 million square feet. The Company has owned a non-controlling interest in the entity that indirectly owns the property since 2007, and sold a majority of this interest for approximately $114 million, including assumption of debt, to an unrelated third party on January 17, 2017. Buena Vista Plaza is an office building located in the Media Business District of Burbank, California, with approximately 115,000 square feet. The property was sold today to an unrelated third party for $52.5 million.

“These sales mark an important milestone for the Company,” stated Scott Fordham, President and Chief Executive Officer of TIER REIT. “Utilizing proceeds from the sale of our interest in the Wanamaker Building to reduce leverage, we have now substantially completed the strengthening phase of our strategic plan. Further, the sale of Buena Vista Plaza continues the Company’s efforts to exit properties located in non-target markets and begins the recycling phase of our strategic plan.”

Additionally, the Company announced the acquisition of its partner’s approximate 51% interest in Domain 2 and Domain 7 for a contract price of $51.2 million and assumption of debt. The properties total approximately 337,000 square feet of existing office space located at The Domain, a premier, high-density, mixed-use development in northwest Austin, Texas, that encompasses office, retail, entertainment, hospitality and multi-family across a 300-acre park-like setting. The Company acquired various real estate interests in The Domain in July 2015, including its joint venture interests in Domain 2 and Domain 7, which are now wholly owned by the Company. Today, the Company’s assets at The Domain include a 100% interest in 669,000 square feet of existing office properties; an approximate 50% interest in a 291,000 square foot development project that is currently 94% leased and scheduled to deliver in March 2017; and land for development that can accommodate up to 1.3 million square feet of additional office space.

“The Domain represents the epitome of live, work and play, and we are pleased to expand and consolidate our ownership in this dynamic office submarket,” said Mr. Fordham. “In so doing, we have obtained direct access to a notable cache of high-credit and fast growing tenants as well as strategic rights to parking, ingress and egress, and the property owners association, which we believe provides us the best opportunity to optimize value as we continue the prudent execution of our build-to-core development program.”

“Further, we continue to market additional properties for sale located in our non-target markets,” added Mr. Fordham. “With the start of the recycling phase of our strategic plan, we expect to exit several of these remaining markets, with the ability to recycle the sales proceeds into new developments or select strategic investments within our target growth markets.”

About TIER REIT, Inc.

TIER REIT, Inc. is a self-managed, Dallas-based real estate investment trust focused on delivering outsized stockholder return through stock price appreciation and dividend growth while offering unparalleled tenant service. TIER REIT’s investment strategy is to acquire, develop and operate a portfolio of best-in-class office properties in select U.S. markets that consistently lead the nation in both population and office-using employment growth. Within these markets, we target TIER1 submarkets, which are primarily urban and amenity-rich locations. For additional information regarding TIER REIT, please visit www.tierreit.com or call 972.483.2400.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws relating to the business and financial outlook of TIER REIT that are based on our current expectations, estimates, forecasts and projections and are not guarantees of future performance. These forward-looking statements include discussion and analysis of the financial condition of us and our subsidiaries, including our ability to rent space on favorable terms, our ability to address debt maturities and fund our capital requirements, our intentions to sell certain properties, our intentions with respect to development activity, the value of our assets, our anticipated capital expenditures, the amount and timing of any anticipated future cash distributions to our stockholders, and other matters. Words such as “may,” “will,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “objectives,” “strategies,” “goals,” and variations of these words and similar expressions are intended to identify forward-looking statements.

Actual results may differ materially from those expressed in these forward-looking statements, and you should not place undue reliance on any such statements. Factors that could cause actual results to vary materially from those expressed in forward-looking statements include changes in real estate conditions and in the capital markets, as well as the risk factors included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015. Forward-looking statements in this press release speak only as of the date on which such statements were made and, except as required by law, we undertake no obligation to update any such statements that may become untrue because of subsequent events.

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