Equity Commonwealth Completes Final Property Sale, Updates Distribution Range

Equity Commonwealth (NYSE: EQC) has reached a significant milestone in its liquidation process with the completion of the sale of its last remaining property, 1225 Seventeenth Street Plaza, in Denver, Colorado. The sale, which closed on February 25, 2025, fetched a gross sale price of $132.5 million, with a net purchase price of approximately $124.4 million after credits primarily for contractual lease costs. This transaction marks the culmination of EQC's strategic liquidation process, bringing the company closer to its goal of distributing the remaining net proceeds to shareholders and ultimately dissolving the company.

In conjunction with the sale, EQC has updated its estimated aggregate shareholder liquidating distribution range from an estimated aggregate shareholder liquidating distribution range of $20.00 to $21.00 per common share previously announced on November 15, 2024, to an estimated aggregate shareholder liquidating distribution range of $20.55 to $20.70 per common share, inclusive of the initial liquidating distribution of $19.00 per common share paid by the Company on December 6, 2024. This update reflects the successful execution of EQC's liquidation strategy, despite market headwinds, with the remaining potential distribution of $1.00 to $2.00 per share likely to be determined by final transaction costs, tax implications, and any remaining obligations.

The sale of 1225 Seventeenth Street Plaza is a crucial milestone in EQC's liquidation strategy, bringing the company closer to its goal of distributing the remaining net proceeds to shareholders and ultimately dissolving the company. The transaction's structure, with a non-refundable earnest money deposit and completed due diligence, indicates a high probability of closing. This level of commitment from the buyer is particularly noteworthy in the current market environment where office property transactions have been notably constrained by market uncertainty and rising interest rates.

For shareholders, the maintained distribution guidance of $20.00 to $21.00 per share (including the $19.00 already distributed) suggests that the company has successfully executed its liquidation strategy despite market headwinds. The remaining potential distribution of $1.00 to $2.00 per share will likely be determined by final transaction costs, tax implications, and any remaining obligations.

The timing of the sale, scheduled for late February 2025, demonstrates careful execution of the liquidation process, allowing for proper market exposure while maintaining momentum toward complete dissolution. The net purchase price adjustment of approximately $8.1 million for contractual lease costs reflects typical market considerations and suggests thorough due diligence in structuring the deal terms.



In conclusion, Equity Commonwealth's completion of the sale of 1225 Seventeenth Street Plaza and the subsequent update to its distribution range reflect the company's progress in its liquidation process. As EQC continues to wind down its operations and distribute the remaining net proceeds to shareholders, investors should closely monitor the company's progress and consider the potential impact on their portfolios.