Austin skylineAUSTIN, TEXAS–Philadelphia-based Brandywine Realty Trust is buying out its partner in the DRA Austin real estate venture and, at the same time, selling 8 properties in Northern Virginia to help fund the transaction.
The REIT's agreement to buy out its partner in Austin values the portfolio at $537 million, or $342 per square feet. The remaining portion of the portfolio that Brandywine is acquiring consists of 12 buildings totalling 1.57 million square feet.
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The portfolio is encumbered by $246.5 million of mortgage debt that Brandywine plans to pay off at closing or during the first quarter of 2019.
The deal will close in the fourth quarter of 2018.
Brandywine plans to fund the acquisition using cash-on-hand, an unsecured line of credit and proceeds from a pending portfolio sale in Northern Virginia: namely eight properties that are trading for $312 million. The buyer is the Rockpoint Group and the buildings total 1.29 million square feet.
Brandywine is retaining a 15% equity interest in the portfolio through a JV.
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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.
