WASHINGTON, DC-Brandywine Realty Trust has formed a joint venture with Current Creek Investments, LLC, a wholly owned subsidiary of Allstate Insurance company. The REIT contributed three of its DC-area buildings to the 50-50 owned venture. Brandywine did not return a request for comment to GlobeSt.com.

The properties are valued at $156 million, with a cap rate of 6.8% cash. The properties are 3130 and 3141 Fairview Park Dr. in Falls Church, VA, and 7101 Wisconsin Ave., in Bethesda, MD.  In addition, Current Creek and Brandywine have each kicked in $75 million in equity to pursue additional office property investments in certain sub-markets in the DC area. 

The fund, when levered at 60%, is expected to have purchasing power capacity of approximately $375 million. The investment period is for three years. In a prepared statement, Gerard H. Sweeney, president and CEO of Brandywine Realty Trust said that the transaction will allow the REIT to harvest the current value in the contributed portfolio as well as participate in its future appreciation.

In the REIT’s earnings call in October, Sweeney pointed out that if the venture closes without any additional acquisitions in 2012, “it could be a penny or two dilutive, but if we achieve some of the target investment objective we'll be able to offset that situation.”