Brandywine Sells Stake in 1M-SF-Plus Portfolio

Sep 17, 2013
Globe St

Brandywine Realty Trust has formed a joint venture with DRA Advisors LLC to acquire Brandywine's wholly owned office portfolio in the southwest submarket. The new partnership will pay the Pennsylvania REIT $330 million, with each company owning a 50% interest in the portfolio


Brandywine will continue providing property management, leasing and construction management services to the portfolio. The REIT and its New York City partner anticipate closing on the transaction during early Q4 of 2013. Eastdil Secured LLC acted as Brandywine's exclusive financial advisor for this transaction


To pay for the properties, the JV has secured $230.6 million of non-recourse debt through three separate mortgages with a weighted-average majority of five years and an expected weighted-average interest rate of 3.75%. Brandywine and DRA intend to continue pursuing other investments in certain Austin submarkets and will co-invest additional equity in acquisitions meeting specific investment criteria


Properties to be Acquired by the Joint Venture are: Barton Skyway, The Park on Barton Creek, 7000 West Lantana & Cielo Center


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