Brandywine Realty Trust Closes an $85.0 Million Sale of Two New Jersey Properties
October 02 2009 - 3:43PM
PR Newswire (US)
RADNOR, Pa., Oct. 2 /PRNewswire-FirstCall/ -- Brandywine Realty
Trust (NYSE:BDN) announced today that it has closed the sale of the
two properties it owned in Trenton, New Jersey for an aggregate
purchase price of $85.0 million. The properties, 33 West State
Street and 50 East State Street, total approximately 474,000 of net
rentable square feet and were 96.5% occupied as of September 30,
2009. The buyer is an undisclosed, private investment group. Under
the terms of the sale, $22.5 million of the $85.0 million due at
the closing has been deferred by Brandywine as a seven-year, 6.00%
cash-pay / 7.64% accrual second mortgage loan provided to the
buyer. The loan is secured by a second mortgage on the two
properties and is subordinate to the $45.5 million first mortgage
loan the buyer arranged for the purchase. Brandywine will recognize
a gain on the sale of these properties, the majority of which will
be deferred under the installment method of accounting until the
repayment of the second mortgage loan. Upon closing of the sale,
Brandywine realized approximately $62.5 million of cash proceeds
before customary pro-rations and transaction costs, and will
realize approximately $27.8 million of additional cash proceeds on
September 30, 2017 upon repayment of the second mortgage loan
inclusive of the estimated accrual. Under certain circumstances,
the loan may be extended for an additional three years. The initial
proceeds of the sale will provide cash balances for general
corporate purposes including the repayment of existing
indebtedness. An affiliate of Brandywine will manage and lease the
two properties for a seven-year period following the closing. "We
are pleased to achieve the sale of these assets in a challenging
market," stated Jerry Sweeney, President and Chief Executive
Officer of Brandywine Realty Trust. "The sale proceeds strengthen
our balance sheet, reduce leverage and provide additional capital
for our investment activities. Recycling capital from non-core
assets such as these two properties remains an integral part of our
overall strategy. Furthermore, this sale demonstrates our
commitment and ability to execute on the key components of our
previously announced business plan." Jones Lang LaSalle marketed
the properties for sale on behalf of Brandywine. About Brandywine
Realty Trust Brandywine Realty Trust is one of the largest,
publicly traded, full-service, integrated real estate companies in
the United States. Organized as a real estate investment trust and
operating in select markets, Brandywine owns, develops and manages
a primarily Class A, suburban and urban office portfolio
aggregating approximately 36.1 million square feet, including 25.6
million square feet which it owns on a consolidated basis. For more
information, visit our website at http://www.brandywinerealty.com/.
Forward-Looking Statements Certain statements in this release
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance, achievements or transactions of the Company and its
affiliates or industry results to be materially different from any
future results, performance, achievements or transactions expressed
or implied by such forward-looking statements. Such risks,
uncertainties and other factors relate to, among others, the
Company's ability to lease vacant space and to renew or relet space
under expiring leases at expected levels, the potential loss of
major tenants, interest rate levels, the availability and terms of
debt and equity financing, competition with other real estate
companies for tenants and acquisitions, risks of real estate
acquisitions, dispositions and developments, including cost
overruns and construction delays, unanticipated operating costs and
the effects of general and local economic and real estate
conditions. Additional information or factors which could impact
the Company and the forward-looking statements contained herein are
included in the Company's filings with the Securities and Exchange
Commission. The Company assumes no obligation to update or
supplement forward-looking statements that become untrue because of
subsequent events. DATASOURCE: Brandywine Realty Trust CONTACT:
Investor/Press Contact, Marge Boccuti, Manager, Investor Relations,
Brandywine Realty Trust, +1-610-832-7702, , or Company Contact,
Howard M. Sipzner, EVP & CFO, Brandywine Realty Trust,
+1-610-832-4907, Web Site: http://www.brandywinerealty.com/
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