WASHINGTON, DC-Washington Real Estate Investment Trust is wrapping up the last of the sale of a 2 million-square foot industrial portfolio, which also included two office buildings. The REIT has closed the final sale of the multi-stage transaction, with the trade of Dulles Business Park and 6100 Columbia Park Road for $70.6 million.
The $70.6 million includes a $0.9 million reimbursement of a prepayment penalty associated wittwo mortgage notes on Dulles Business Park. All together, WRIT has completed three transactions associated with this portfolio, beginning with the September 2011 transaction of $235.8 million. The aggregate sales proceeds for the entire industrial portfolio are $350 million. A joint venture between AREA Property Partners and the Adler Group are the buyers.
The REIT recognized a GAAP gain of $97 million, according to a prepared statement by CEO George “Skip” McKenzie. “We have already reinvested into better located and faster growing office and retail assets, leaving us with a well-positioned portfolio as we look ahead to 2012.”
The sale comes as the DC-area industrial market is in a state of flux. For starters, nearby Baltimore is rapidly outperforming the closer-in DC area suburbs. At the same time, DC’s industrial market is experiencing a slowdown due to the government’s fiscal issues. Also, the most recent supply chain and manufacturing statistics suggest a slowdown in factory activity, both here and globally, has set in.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
