Brandywine Realty Trust Unloads 58 Properties in Near $400 Million Deal
Brandywine Realty Trust has sold a large portfolio of properties to an affiliate of Och Ziff Capital Management Group LCC, according to a company release.
The complex deal–worth $398.1 million–includes nearly 4 million square feet of rentable space over 58 “non-core holdings” in Pennsylvania, New Jersey and Virginia. It marks the completion of what Brandywine called a “multi-year portfolio repositioning strategy” totaling $1.1 billion.
“The 2015 and early 2016 dispositions provide significant liquidity and results in a portfolio much more focused on urban and town center properties,” said Gerard Sweeney, president and CEO of Brandywine realty Trust, in the statement. “In addition, these transactions significantly increase our financial capacity, reduce debt and provide ample liquidity for our development pipeline.”
In December, Brandywine entered into an agreement to offload its interest in Cira Square–the former Post Office complex at 30th and Market– for $354 million. That sale is expected to close this month. The company will continue to provide property management services in both deals, with the Och-Ziff agreement also containing leasing and construction management services “for the majority of the portfolio.”
These moves come as Brandywine is in the thick of some of the most recognizable projects in Philadelphia. Construction at the FMC Tower continues to roll on towards completion in 2017. They’ve also purchased multiple key properties up and down Market Street, and leasing at 1919 Market–a 28-story luxury apartment building in partnership with LCOR adjacent to the headquarters of Independence Blue Cross–has just kicked off in earnest.