ALEXANDRIA, VA-Continuing to recycle capital at a near mad pace, Washington Real Estate Investment Trust (NYSE: WRE) has acquired Braddock Place, a 345,000-square foot office campus here for $101 million. It paid cash for the four-asset complex, which is 92% leased to 13 tenants. The buildings, 1310, 1320, 1330 and 1340 Braddock Place, are located in Old Town next to the Braddock Road Metro Station.
The acquisition fits with the REIT’s long-term strategy, said George McKenzie, president and CEO of WRIT, in a prepared statement. “We have many capital improvements and upgrades planned in the near term to modernize the common areas and maximize future rental rate growth,” McKenzie said.
WRIT has been transitioning out of its industrial holdings, with the goal of beefing up other asset classes such as office and retail. It recently closed the first phase of its sale of its industrial portfolio to a joint venture between AREA Property Partners and the Adler Group, a $236 million transaction. Last month it also acquired a grocery-anchored retail center in Olney, MD for $58 million. The 199,000-square-foot property is anchored by Shoppers Food Warehouse. Other office deals include 1227 25th St., NW, which it acquired for $47 million and 1140 Connecticut Ave., NW, bought for $80.25 million.
WRIT funded the acquisition of Braddock Place with cash proceeds from its recent sale transactions of the industrial portfolio. WRIT expects to achieve a first year unleveraged yield of 6.9% on a cash basis.
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