Included among Newtown Square, PA-based Brandywine's dispositions is 766,000 sf of industrial/flex space spread across 15 buildings on a two-acre site in Bucks County, PA. The portfolio is located in the Metropolitan Industrial Center and Bucks Business Park in Trevose and Langhorne, PA, respectively. Chicago-based First Industrial Realty Trust Inc. paid $38.9 million for the asset. The deal closed Feb. 21.
"The acquisition of Brandywine Realty Trust's Bucks County industrial portfolio fulfills several of First Industrial Realty Trust's strategic objectives in the Philadelphia region," says First Industrial senior investment officer Howard Freeman. "The addition of 766,000 square feet of high quality real estate in two premier business parks establishes a concentration of assets that will enhance our ability to serve our regional tenant base and positions us for further growth through additional acquisitions and/or development activity in this submarket."
Another agreement in place is for the sale of Park 80 West Plaza I & II, two class A office buildings totaling 476,874 sf located in Saddle Brook, NJ. The sale is expected to close by the end of the month.
Brandywine has also reached a definitive agreement to purchase Plymouth Meeting Executive Campus in Plymouth Meeting, PA. The asset is a four-building office portfolio with an aggregate 360,250 sf.
"These sales are a key part of our capital recycling program and reflect our previously disclosed investment strategy of disposing of assets not located in our core markets or our targeted product type of class A office properties," says Brandywine president and CEO Gerard H. Sweeney. "The execution of this strategy allows Brandywine to continue to grow on a leverage neutral basis by enabling us to take advantage of attractive investment opportunities in the markets which we currently have a concentrated market share and operating economies."
On Thursday, Brandywine released its Q4 2001 earnings, showing a 9.5% FFO increase over the same period in 2000. Fourth Quarter FFO for 2001, excluding non-recurring charges, increased to $32.6 million or $.69 per shard from $30 million or $.63 per share the year before.
"We exceeded our key financial and operational benchmarks," Sweeney says. "Our 2001 tenant retention rate of 77.5% exceeded our stretch goal of 75% established in 2000. We believe this retention rate reflects the quality and location of our properties as well as the strength of our marketing and management staffs. In addition, our capital recycling program enables us to continuously improve our asset quality, market concentration and operational efficiency,"
The company has also made several recent personnel changes. Chairman Anthony Nichols Sr. has moved into a non-management, non-executive role and will be available to assist Sweeney and the board of trustees. Senior vice president of Pennsylvania operations Jeff DeVouna has taken on the additional responsibility of the company's Central/Southern New Jersey operations. Barbara Yamarick, senior vice president of tenant services, is assisting him in the new role along with senior vice president of leasing Anthony Nichols Jr., vice president of operations Phil Schenkel and vice president of construction Jeff Weinstein. George Sowa will assume responsibility for the company's investment activities including its sales and disposition efforts.
"Our management reorganization will further sharpen our operational, tenant service and investment activities, while effectively reducing our general and administrative costs," notes Sweeney.
Brandywine owns, manages or has ownership interest in 303 office and industrial properties with an aggregate 20.5 million sf.
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