DC Industrial Market Under Spotlight as WRIT Sells Holdings

WASHINGTON, DC-Washington Real Estate Investment Trust (NYSE: WRE) is selling its entire industrial portfolio, plus two office buildings, to a single, unidentified buyer for $350 million. The sale is part of WRIT’s decision to reposition its holdings to focus more on Inside-the-Beltway assets, George F. “Skip” McKenzie, president and CEO of WRIT says in a prepared statement. “We’re delighted to be moving forward with our strategic plan at this current pace,” he said. WRIT did not return a call to GlobeSt.com in time for publication.

The 3.1 million-square foot portfolio is located throughout the DC area, in such submarkets as Alexandria, Chantilly, Lorton and Springfield, VA and, in the Maryland region, in the Capitol Heights, Lanham, Landover, Laurel and Frederick submarkets. All together 16 industrial assets are trading, along with the Crescent and Albemarle office buildings. The deal is structured as five separate purchase and sale agreements, three of which are expected to close at the start of September. Those are worth an aggregate of $235.7 million. An additional contract representing $44.6 million in properties is expected to close on or about October 3, 2011. The final contract, for $69.7 million of assets is expected to close on or about November 1, 2011.