Hirl told GlobeSt.com that the purchase price—$429 per sf for three of the four buildings in Rockville—was a record for that submarket. "The 400s have not been crossed yet," she says. "I would say the max has been in the high 300s." She said the portfolio was very high quality, with two of the buildings newly built and 100% leased. The remaining building in Bel Air was sold for $230 per sf.
The portfolio is expected to produce a first-year unleveraged yield of 6.6% on a GAAP basis and 6.3% on a cash basis. WRIT assumed three mortgages in the amount of $19.4 million bearing interest at a weighted average interest rate of 5.4%. The remainder was funded through its line of credit.
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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.
