"This successful sale illustrates the increasing desire of investors to acquire properties in the Philadelphia region," says Jerry Sweeney, Brandywine's president and CEO. "We will continue to sell non-core properties on a selective basis in order to improve the quality of our portfolio and recycle capital into higher-growth development and redevelopment initiatives."
The building is just more than two years old, and is fully occupied by a regional office of AAA Mid-Atlantic. Brandywine did the project as a build-to-suit for AAA Mid-Atlantic, which has 13 years left on its lease. Brandywine will also remain in the building as its property manager for the new ownership.
The GAAP and cash sales cap rates for the sale are 6.7% and 6.2% respectively, according to information released by Brandywine. Those numbers are based on projected 2008 net operating income.
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