Brandywine is poised to sell two office buildings, in Bala Cynwyd, PA and in Dallas, with proceeds of approximately $98.1 million expected to be invested in the DC market.
Brandywine acquired 2340 and 2355 Dulles Corner Blvd in Herndon, from an undisclosed seller through a combination of cash and $13.8 million of operating partnership units priced at $32.546 per unit. The seller will lease back space as part of the transaction in the 2340 building. It has provided a $1.4-million credit toward expenses of its 15,000-sf lease as well as funding for a $6.8-million capital investment program for the buildings.
The buildings have been primarily leased to AT&T since they opened. Northrop Grumman recently signed a 10-year lease for 264, 405 sf at the 2340 Dulles Corner site that it plans to occupy in November. Besides the seller, a food service provider has also signed a lease for space in 2340, according to Brandywine. 2355 Dulles Corner, meanwhile, is 80% vacant.
With their addition, Brandywine now owns five properties in Dulles Corner Office Park, as well as having one project under construction and one future development site, for a total of 1.3 million sf. Providing existing tenants with flexible expansion options is one of the reasons to holding multiple properties within this park, according to a statement by Jerry Sweeney, president and CEO of Brandywine.
Simultaneous with the Dulles acquisition, Brandywine is expected to close the sale of two office buildings, Bala Pointe in Bala Cynwyd, PA, and Walnut Glen Tower in Dallas, within the next 20 days. With the sale of Walnut Glen Tower, a 464,269-sf class A office tower in Dallas, Brandywine will have monetized more than $256 million worth of property in the Dallas market since acquiring Prentiss Properties in January. Walnut Glen is being acquired by Prescott Realty Group, a Dallas-based, mixed-use investment and development firm.
The anticipated sale of Bala Pointe, a 173,000-sf office building located in the Bala Cynwyd submarket of Philadelphia, by contrast, is the first sale of its non-core Metro Philadelphia area assets.
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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.
