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WASHINGTON, DC-Washington Real Estate Investment Trust has closed on a $94-million portfolio acquisition from an undisclosed seller that had been pending since second quarter. In Q2 WRIT closed on some $133.4 million in acquisitions.

The REIT has acquired West Gude Office Park, the Ridges, and Crescent, office buildings located in Montgomery County that total 442,467 sf. The deal had been pending based on the assumption of two mortgages on the properties, which are located in Rockville and Gaithersburg. During last quarter’s earnings call chairman and CEO Edmund B. Cronin, Jr. told listeners this transaction would close in August. The entire portfolio is 95.6% occupied.

CFO Sara Grootwassink tells GlobeSt.com that the company hopes to expand the Ridges. In general, she says, the company likes the demographics of this marketplace, located near government agencies and a thriving biotech and high tech corridor , and believes it will increase its return over time. WRIT is projecting a first year cash-on-cash unlevered return of 6.6%, she says. In the second year, it is expected to reach 7%. “Also, the price per sf makes this a very attractive acquisition,” she says.

WRIT will assume two loans totaling $57.3 million at a weighted average interest rate of 5.84%. The remaining $36.7 million will be funded through its line of credit.

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