At the close of Brandywine's acquisition of ABP's minority stake, the portfolio was 90.6% occupied by about 100 tenants and valued at $279.5 million. After consideration of the debt, which is not specified, the locally based REIT paid $63.5 million for the additional 49%. The price represents a 6.1% cap rate on anticipated 2007 cash net operating income and a 6.5% cap rate on anticipated 2007 NOI, according to generally accepted accounting procedures.
The California properties are the 10-story, 238,392-sf building at 1333 Broadway across from city hall in Oakland, and the three-story, 61,587-sf Carlsbad Airport Plaza in the Carlsbad Research Center. As GlobeSt.com previously reported, the Prentiss/ABP JV paid $39.4 million for the Oakland asset in July 2005. The price paid for the Carlsbad asset is unavailable.
The Virginia properties are the four-story President's Plaza I and II buildings, which aggregate 196,715 sf each and overlook the Dulles Toll Road, and the six-story, 227,574-sf building at 2291 Wood Oak Dr., which is along the Dulles Toll Road in the Woodland Park submarket. The President's Plaza duo was acquired for $51.5 million in April 2005. The Wood Oak Drive asset was also acquired for $51.5 million in August 2003, according to GlobeSt.com reports.
Of the buy-out, Jerry Sweeney, Brandywine's president and CEO, says, "it consolidates our ownership of a group of outstanding assets in the key Washington, DC; Oakland; and Southern California markets. At the same time, we mark the successful conclusion of a long-standing partnership with ABP and look forward to similar opportunities to work together in the future."
New York City-based Sonnenblick-Goldman represented ABP. Brandywine was represented in house.
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