WASHINGTON, DC—Brookfield Property Partners has sold a 49% stake of a local office portfolio to joint venture partner AustralianSuper. Net proceeds of the deal total $349 million. The transaction values the eight properties, which total 2.2 million square feet and are 96% occupied, at $1.32 billion.
Brookfield will retain management and leasing responsibilities at the eight buildings, which total 2.2 million square feet and are 96% occupied. The buildings are located in the East End, the CBD, NoMa and Bethesda, MD.
"We continue to see healthy demand from investment partners in core, stabilized office properties in major markets, and took this opportunity to bring AustralianSuper into Washington, DC as part of our ongoing capital recycling initiative," said Ric Clark, CEO of Brookfield Property Group, in a prepared statement. "We are committed to maintaining our presence in Washington and are pleased with our growing relationship with AustralianSuper."
Five of the properties are in the East End. They are: 1400 K St., 1200 K St., the Victor Building, 650 Massachusetts Ave, and 799 9th Street. The remaining three assets are 1250 Connecticut Ave., in the CBD; 77 K St. in NoMa; and Bethesda Crescent in Bethesda, MD.
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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.
