The property is leased to 21 tenants. With some 227,000 netrentable sf and 375 parking spaces, WRIT is expecting to achieve afirst-year, unleveraged yield of 6.2% on a cash basis and 6.7% on aGAAP basis, according to a statement by the company. Theacquisition was funded with proceeds from a 1031 exchange andborrowings on WRIT's line of credit.
CFO Sara Grootwassink tells GlobeSt.com that the company plansto leverage upcoming turnover in the building as many of thetenants are paying below market rents. "There is a well balancedmaturity of leases: 20,000 sf are maturing in 2008 and 91,000 sfare maturing in 2011," she says.
WRIT has been on an acquisition spree for well over a year. Muchof its office portfolio has been focused on medicalbuildings--indeed, the firm owns a medical office building on thesame block as its newest acquisition. A class A facility, WRITacquired 2440 M St. for $50 million.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
