CMCT announces actions to accelerate focus toward premier multifamily assets

CMCT has plans to accelerate the transition of its focus toward premier multifamily assets from traditional office assets and strengthen its balance sheet and liquidity.

The company has previously targeted a capital structure consisting of approximately 40 percent common equity, 30 percent preferred equity and 30 percent debt. The recent decline in real estate values, particularly in the Bay Area and the office market in general, has resulted in a lower than targeted common equity ratio. CMCT recently explored the sale of several high-quality assets to improve its common equity ratio. The offer CMCT received reflected what the company believed to be the fair value of these assets, but the buyer was unable to close.

As a result of this and the recent decline in interest rates, CMCT has decided to shift its focus to refinancing rather than a sale of these assets. The company intends to place property-level financing on several assets and use part of the proceeds to fully