The deal is expected to close by the end of this year. It is subject to certain conditions, including the JV's completion of approximately $187 million of secured property financing. The properties are currently unencumbered, Jerry Sweeney, Brandywine's president and CEO, tells GlobeSt.com. "The JV identified a third-party lender that will place mortgages on the properties."

The sale represents a cap rate of about 7.4% according to GAAP and 7.2% cash, based on trailing 12-month net operating income through this Sept. 30, and a 7.9% cash yield, based on 2008 projections. Locally based Brandywine expects total proceeds of $235.2 million, which it will use to reduce debt on its unsecured revolving credit facility.

Sweeney announced this pending agreement during a third-quarter conference call in which he did not identify the partner or the properties. Of DRA, he says, "it's an opportunity to bring a great partner into the family. The co-investment vehicle will allow us to recycle capital to higher growth opportunities in our target market with a particular emphasis on our current and planned development projects." He also notes that by retaining a 20% stake and management of the portfolio, "we will share in the upside." Asked if more JVs are in the offing, he says, "it's certainly a very viable way for us to raise capital."

The properties are located in four Pennsylvania suburban markets. Nine buildings in Horsham have an aggregate of 318,137 sf; six in Fort Washington aggregate 457,913 sf; three in Bensalem aggregate 167,280 sf, and the 11 properties in Allentown have a total of 672,897 sf. As of Sept. 30, the portfolio was 95.3% occupied and 96.4% leased.

Three Brandywine properties, which aggregate 260,000 sf in those markets, were not included in the deal. Sweeney says one is a warehouse facility that doesn't really fit into the portfolio and two are redevelopments. Robert Fahey of the Philadelphia office of CB Richard Ellis represented Brandywine in marketing the portfolio.