ARLINGTON, VA-Brookfield Properties Corp. has closed on its purchase of two office buildings–601 & 701 South 12th St.–from National Retail Properties, a publicly-traded REIT. The assets were acquired for $230 million. Brookfield has assumed a $95-million, interest-only mortgage at 5.4%, which expires in 2013.

Proceeds from the recent sale of two of Brookfield’s Denver assets were used to fund the acquisition of these properties in a 1031 exchange. Craig Macnab, CEO of National Retail Properties, says that proceeds of this sale will be eventually invested in a portfolio of higher yielding retail properties.

For its part, Brookfield is divesting itself of its secondary market assets in order to expand in the Washington-area market, says Ric Clark, president & CEO of Brookfield Properties. The two 12-story office buildings are located in the Pentagon City, a submarket of Arlington County, and total 554,000 sf. The properties are 100% leased to the Transportation Security Administration through 2014.

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