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Brandywine Takes All of 1M-SF Portfolio

RADNOR, PA-The REIT pays $63.5 million to acquire the remaining 49% of a portfolio assembled in joint venture between Prentiss and Stichting Pensioenfonds ABP.

By Marita Thomas | Updated on April 16, 2007

RADNOR, PA-Brandywine Realty Trust has acquired the remaining 49% of an approximately one-million-sf office portfolio that contains five buildings in California and Herndon, VA. The portfolio was acquired by a joint venture formed in 2003 between Netherlands-based Stichting Pensioenfonds ABP and Dallas-based Prentiss Properties. Brandywine acquired Prentiss in 2006.

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.

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