September 27, 2021

Abstact Arts

Spearheading Arts Goodness

WashREIT Agrees to Provide Business Portfolio for $766M, Shifts Emphasis to Multifamily Sector

2 min read

Pictured is Arlington Tower, a single of the 6 Northern Virginia place of work qualities that was incorporated in the sale. (Image courtesy of David Madison Photography)

WASHINGTON, D.C. — WashREIT (NYSE: WRE) has agreed to provide significantly all of its place of work portfolio to a Brookfield Asset Management non-public real estate fund for $766 million. The portfolio is made up of 12 office environment belongings spanning nearly 2.4 million sq. feet in metro Washington, D.C. The transaction is predicted to near in the third quarter.

As of May well 31, the place of work portfolio was somewhere around 83 % occupied. 6 of the homes are situated in Northern Virginia — 515 King Avenue, Courthouse Square, 1600 Wilson Boulevard, Fairgate at Ballston, Arlington Tower and Silverline Center. The other six assets are positioned in Washington, D.C. They consist of 1901 Pennsylvania Avenue, 1220 19th Avenue, 2000 M Road, 1140 Connecticut Avenue, the Military Navy Constructing and 1775 Eye Road.

The sale coincides with WashREIT’s multi-calendar year technique of reworking into a multifamily REIT. The organization has also signed a letter of intent to offer its remaining eight retail assets, and expects to finish that sale in the 3rd quarter.

WashREIT suggests it ideas to use the web proceeds from the profits to fund the expansion of its multifamily platform through acquisitions in Southeast markets and to decrease its leverage by repaying remarkable personal debt.

Just after the transaction is finish, WashREIT will only very own a person place of work asset. Watergate 600 is a Class A business office building in Washington, D.C. spanning 295,000 square feet. The firm says it intends to divest of Watergate 600 “when practicable.”

“We are asserting the most sizeable milestone to day in our transformation into a multifamily REIT,” claims Paul McDermott, president and CEO of WashREIT. “This transaction, alongside with sourcing multifamily expansion options and our retail profits approach, indicators our perception that the multifamily asset class is the ideal motor vehicle to harness lengthy-term progress for our buyers.”

WashREIT’s multifamily tactic targets the Course A-, Class B value-increase and Course B segments. The business focuses on middle-income renters and markets poised for demand from customers, this sort of as Atlanta, Raleigh-Durham and Charlotte.

JLL served as the company’s distinctive serious estate advisor in link with the business and retail portfolio revenue. Goldman Sachs & Co. LLC is serving as unique strategic economical advisor.

WashREIT’s inventory selling price opened at $25 for each share Wednesday, June 16, up from $23.70 for every share just one 12 months back. The firm at this time owns 6,863 condominium units throughout the D.C. metro area.

— Kristin Hiller

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