Photo: Steve Case
AOL is selling the east side of its Dulles campus to CB Richard Ellis, the companies announced this morning.AOL will get $144.5 million for the property.
In the release, AOL CFO Artie Minson said this was part of AOL’s plan to sell off “non-core assets.”
AOL has owned the land since 1996, but wasn’t using it.
In the release, AOL says it will now have $750 million in cash on hand.
Here’s the full release announcing the sale:
AOL Inc. today announced that it has entered into an agreement for the sale of four office buildings it no longer utilizes and two undeveloped parcels of land on the East side of its Dulles campus to CB Richard Ellis Realty Trust for $144.5 million. As of October 29, pro forma for the sale AOL has approximately $750 million of cash on hand.
“A part of AOL’s strategy during our turnaround has been to dispose of non-core assets,” said Artie Minson, Executive Vice President and Chief Financial and Administrative Officer. “While the Dulles campus is an important part of AOL’s future, we simply had no need to continue owning the additional space — having already moved all of our talent in Dulles to one side of the campus. With a long-term lease in place it made sense for us to pursue a sale to realise maximum value of these assets and add significant cash to our balance sheet.”
The combined total office space is approximately 700,000 rentable square feet in the four buildings and is known as Pacific Corporate Park. The two parcels of undeveloped land, also in Pacific Corporate Park, total approximately 22 acres. AOL, which originally purchased the land located on the East side of its campus in 1996, had vacated these office buildings by early 2010. The buildings are 100% leased, with a majority of the space leased to one tenant for a 10-year term.
AOL continues to have over 1,800 full-time employees on its Dulles campus in three office buildings. AOL also maintains two data centres in Virginia — one on its Dulles campus and one in Manassas.
AOL was represented by CB Richard Ellis in this transaction. The deal is expected to close by mid-November and is subject to customary closing conditions.