The buyer is also assuming the $389 million in debt for theproperties, about the only type of portfolio available today, saysRichmond McCoy, president and CEO of the company. "We've only beenlooking at properties with existing debt, it's extremely difficultto acquire or sell properties in this environment that do not haveexisting debt," he tells "There's been a dramaticslowdown in transactions this year, and it will continue."


The REIT will still hold a part of the portfolio. Rubicon ispaying $30 million for preferred equity have some ownershipinterest in the portfolio. The trust said in a statement that itwill use the $90 million in net sale proceeds to reduce overallborrowing.


McCoy says the portfolio fit his company's strategy of buyingwell-leased assets. "We focus mainly on government-leasedbuildings, or properties used by colleges or healthcare providers,very sticky tenants who generally stay where they are forgeographic reasons," he says. The portfolio, which is 98% leased,is 93% occupied by GSA tenants, McCoy says.


A list of the properties was not available by press time. Theportfolio does include buildings such as the 177,000-sf 999 E. Washington, DC, the headquarters for the Federal ElectionsBureau.

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