Prentiss, Brandywine Make Asset Swap Official

With the final signing, Brandywine also walked away with a separate contract for an under-construction 206,000-sf office development in addition to the planned more than 1.6 million sf in 30 buildings and nearly seven acres, all in the suburban Philadelphia market and crossing into Delaware and New Jersey. Prentiss is in the midst of developing 130,000 sf of the 206,000-sf project.

Under the definitive agreement signed in mid-March, Brandywine had agreed to assume the existing secured debt plus will kick in cash in the exchange. Prentiss would get four buildings, totaling 657,389 sf, and 25% interest in two joint venture office properties, consisting of 451,651 sf, in the high-flying 128-million sf Northern Virginia market, where Prentiss wants to build more of a presence. In the final count, it's Brandywine has title to about $220 million in holdings; Prentiss, about $132 million.

The game plan, Prentiss CEO and president Thomas F. August had previously told GlobeSt.com, is to maneuver its way to be strictly and office REIT. The deal also opens the door to more acquisitions in Dallas, Chicago and Southern California, areas where there's a strong presence.

The Dallas-based REIT owns interests in 146 operating properties totaling about 17.5 million net rentable sf and seven development projects consisting of 1.1 million net rentable sf. Subsidiary Prentiss Property Services manages about 40 million sf of REIT, third-party and affiliate-owned office and industrial holdings in the US. Brandywine owns 275 commercial and industrial properties, holds 44 third-party assignments and partners in seven joint ventures for an aggregate 21.7 million rentable sf.