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Brandywine Closes $245M DRA Joint Venture

RADNOR, PA-The REIT contributes 29 Pennsylvania properties to the JV and retains a 20% interest along with management responsibilities.

By Marita Thomas | Updated on December 21, 2007

RADNOR, PA- Brandywine Realty Trust has completed its previously announced sale of a 29-property suburban office portfolio to a joint venture with New York City-based DRA Advisors LLC. The properties are located in Allentown and three Philadelphia suburbs and encompass an aggregate of 1.6 million sf.

The portfolio is valued at $245.4 million and is 96.4% leased. The valuation represents a cap rate of approximately 7.3%, based on net operating income through Sept. 30, 2007, and 7.9% based on preliminary NOI projections for 2008.

Under the terms of the agreement, with the exception of three buildings, DRA obtains an 80% interest in the portfolio, and Brandywine retains a 20%-share and also continues to manage and lease the properties. In the exceptions, which aggregate 202,373 sf Allentown, Brandywine sold an 89% interest and retains 11%.

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