GREENBELT, MD-Washington Real Estate Investment Trust has sold Maryland Trade Center I and II for $58 million. The Rockville-based REIT acquired the office assets for $28 million in May 1996.
Maryland Trade Center 1 at 7500 Greenway Center Dr. is 16 stories with an aggregate of 190,000 sf. It was constructed in 1981, and OAO Technology Solutions Inc. and Lockheed Corp. are among its tenants. Lockheed is also among the tenants, along with Bank of America, in the 12-story, 160,000-sf Maryland Trade Center II property at 7474 Greenway Center Dr. It was built in 1984.
Sara Grootwassink, WRIT's EVP and CFO, declines to identify the buyer, but tells GlobeSt.com the buildings were sold to a single buyer, which she declined to characterize further. WRIT realized a net book gain of $25 million from the sale, and the unlevered rate of return was 16.9% over the company's 11-year ownership. Proceeds from the sale will be reinvested in a 1031 exchange, according to a WRIT statement.
Grootwassink also declines to disclose the current occupancy and rental rate of the assets. The published asking rent rate for the nearby Maryland Trade Center III is $17 per sf. Rental rates for similar properties here range from $15 per sf to $19.50 per sf.
WRIT has been a prolific buyer in the Greater Washington, DC markets, most recently focusing on medical office properties. As GlobeSt.com reported, it is also eyeing development in the medical office sector.
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