Our strategy is clear; we are decreasing our investment in suburban office and increasing our investment in industrial real estate and metro office. We acquired eight properties for $104 million during the quarter. Five of the properties were industrial properties and accounted for $83 million of this investment.
During the quarter, we begin construction of 1.2 million square feet of property with the projected investment of $76 million. Three of the properties with the projected investment of $61 million are industrial properties. The remaining property with the projected investment of $15 million is a 100% pre-leased office building at Philadelphia Navy Yard. As of September 30, the committed investment in development properties is a $171 million and the projected yield on this investment is 10.2%.
Moving on to the core portfolio. During the quarter, we executed 3.6 million square feet of renewal and replacement leases. For these leases, rents decreased by 8.6%. Our guidance for the year is that rents would decrease by 7% to 12%. For the same-store group of properties, operating income decreased by 1% on a straight-line basis and increased by 0.7% on a cash basis for the third quarter of 2011 compared to the third quarter 2010.
On the capital front, last week we replaced our existing credit facility with the new facility. We didn’t change the size of the facility. It remains at $500 million and the facility covenants are essentially unchanged. We did change the term and the borrowing rate. The old facility was due November 2013. The new facility expires in November 2015 and there is now a one-year extension option.Borrowings under the new facility are at a spread of 107.5 basis points over LIBOR. This borrowing spread reflects the adjusted borrowing rate under the new facility as well as the adjustment due to our recent credit rating upgrade. Read the rest of this transcript for free on seekingalpha.com
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