What happened

Real estate investment trusts, or REITs, aren't exactly known for their large price swings, but that's exactly what we're seeing with office REIT Columbia Property Trust (CXP). As of 2 p.m. EDT Tuesday, Columbia Property Trust shares were higher by about 15%.

So what

There is a clear reason for today's move and it isn't earnings. Rather, it was announced early Tuesday morning that Columbia's board has agreed to be acquired by PIMCO for $3.9 billion, inclusive of debt. The takeover is an all-cash transaction, with Columbia shareholders set to receive $19.30 in cash for each of their shares of the REIT. This is roughly 16% higher than where Columbia shares closed at the end of the previous trading session, and explains today's move.

Office buildings.

Image source: Getty Images.

Earlier this year, Columbia Property Trust announced a strategic review process to maximize shareholder value, and after exploring options, the board feels this is the best possible outcome for the REIT's shareholders, especially since the overall office sector has traded down about 5% since the strategic review process was started.

Now what

The acquisition is expected to close rather quickly -- as soon as the end of the year, assuming Columbia's shareholders approve the deal (there's no reason to believe they won't). In fact, with shares trading for roughly $19.05 as I write this, just shy of the $19.30 investors will receive upon finalization of the acquisition, it's fair to say that the market is convinced that the deal will go through with no trouble.