Citrix

Citrix Building

Citrix

Property Description

On September 12, 2016, we acquired a 119,224 square foot five-story office building in Fort Lauderdale, FL leased to Citrix Systems, Inc. (NASDAQ: CTXS) for $23,900,000 ($200.46 per square foot) from Mainstreet Capital Partners, a Florida-based private investment firm.

  • The Property sits adjacent to Citrix’ global headquarters and has been occupied by Citrix since 1997. Citrix has expanded eight (8) times in the property to become the full building occupant as of May 2015.
  • GCC assumed the in-place 10-year net lease with a remaining term of 9.1 years at close.
  • GCC financed the acquisition with Principal Financial Group. Principal provided a $14.1MM non-recourse mortgage at a fixed rate of 4.25%. The loan has a 10-year term with a 25-year amortization period.
  • The going in “cash” cap rate was 7.5%, and the average cap rate over the life of the lease is 8.3%.

Property Photos

Investment Thesis

  • Mission Critical Real Estate – The investment represents the opportunity to acquire one of the five (5) properties that operate as Citrix’s corporate campus. The other four (4) properties are owned by Citrix. The property is adjacent to Citrix’s world headquarters property which it has occupied and owned since 1991. The full occupancy of our property was the next step in Citrix’s growth in South Florida. Citrix occupies 455,000 square feet in this cluster of four buildings, inclusive of 119,000 square feet of space at our property to create a corporate campus.
  • Strong Credit – Citrix is a member of the S&P 500 and Fortune 1000 and maintains a strong financial profile with over $3 billion in annual revenues and strong Fixed Charge Coverage.
  • Strong Commitment to Our Building – Citrix will invest a significant amount of its own capital into our building over and above the tenant improvement funds provided by the previous owner.

Market Description

The property is located in Fort Lauderdale’s Cypress creek submarket. The Cypress Creek submarket is a technology stronghold attracting firms including Citrix, Microsoft and Oracle. The submarket offers a convenient location with excellent access from all points in South Florida. Cypress Creek Road runs east/west to I-95. The property is 0.3 miles from the I-95 entrance. There are nine (9) buildings within a 0.5 mile radius that comprise the true comparative set for our property. These properties currently have a vacancy rate which compares favorably to the overall Cypress Creek submarket.

Tenant Description

Citrix provides server, application and desktop visualization, networking and could computing technologies. Citrix (NASDAQ: CTXS) is a member of the S&P 500 and Fortune 1000.

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