RADNOR, Pa., Oct. 2 /PRNewswire-FirstCall/ -- Brandywine Realty Trust 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.
Brandywine Realty Trust
CONTACT: Investor/Press Contact, Marge Boccuti, Manager, Investor
Relations, Brandywine Realty Trust, +1-610-832-7702,
marge.boccuti@bdnreit.com, or Company Contact, Howard M. Sipzner, EVP & CFO,
Brandywine Realty Trust, +1-610-832-4907, howard.sipzner@bdnreit.com
Web Site: http://www.brandywinerealty.com/
