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Franklin Street Properties Corp. Acquires Two Office Buildings in Downtown Minneapolis, Minnesota

^{Published on 2010-06-30 06:56:03 - Market Wire}
 

WAKEFIELD, MA--(Marketwire - June 30, 2010) - Franklin Street Properties Corp. ("FSP," "its," "our" or "we") (NYSE Amex: [ FSP ]), an investment firm specializing in real estate, announced today its acquisition on June 29, 2010 of two office buildings totaling approximately 470,000 rentable square feet of space located in the central business district of Minneapolis, Minnesota. The buildings were acquired for a purchase price of $40,500,000, are adjacent to one another and are approximately 90% leased to a diverse group of over 40 tenants with staggered lease expirations. The largest tenant, TCF National Bank, leases approximately 98% of 801 Marquette Avenue South, a 4-story building containing approximately 170,000 rentable square feet of space, commonly known as the TCF Bank Building. TCF National Bank also leases approximately 30% of 121 South Eighth Street, the adjacent 17-story building containing approximately 300,000 rentable square feet of space, commonly known as the TCF Tower. Ryan Companies US, Inc. will provide on-site management and development services.

FSP and its affiliates have owned office properties in the central business district of Minneapolis and the greater Minneapolis area since 2004. This acquisition brings our total portfolio of directly-owned properties to 33, and we continue to be very optimistic about the opportunities that are presenting themselves to acquire commercial properties at better pricing and value metrics than we have seen in the last several years.

About Franklin Street Properties Corp.

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on achieving current income and long-term growth through investments in commercial properties. FSP operates in two business segments: real estate operations and investment banking/investment services. The majority of FSP's property portfolio is suburban office buildings, with select investments in certain central business district properties. FSP's subsidiary, FSP Investments LLC (member, FINRA and SIPC), is a real estate investment banking firm and a registered broker/dealer. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. To learn more about FSP please visit our website at [ www.franklinstreetproperties.com ].

Forward-Looking Statements

Statements made in this press release regarding anticipated potential future acquisitions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current judgments and current knowledge of FSP's management, which are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements, including without limitation, economic conditions in the United States, disruptions in the debt markets, economic conditions in the markets in which FSP owns properties, changes in the demand by investors for investment in Sponsored REITs (as defined in our Annual Report on Form 10-K for the year ended December 31, 2009), risks of a lessening of demand for the types of real estate owned by FSP, changes in government regulations, and expenditures that cannot be anticipated such as utility rate and usage increases, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments. See the "Risk Factors" set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2009 and subsequent periodic reports filed with the SEC. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law.