RADNOR, Pa., Feb. 1, 2013 /PRNewswire/ -- Brandywine Realty Trust (NYSE:BDN) announced today that it has entered into a definitive agreement to sell Princeton Pike Corporate Center, an eight-building, 800,546 square foot office park located in Lawrenceville, New Jersey, for $121.0 million or $151 per square foot. The sale is expected to close within the next thirty days with the net proceeds used to retire existing debt including balances under our unsecured revolving credit facility. As part of the transaction, we granted the purchaser a 7.5-year option to acquire our three remaining development parcels in the park.
We also completed the following additional investment activities:
- During the fourth quarter, the $34.8 million acquisition of 1900 Market Street, a 456,922 square foot office building located in the central business district of Philadelphia, Pennsylvania, in close proximity to our Commerce Square joint venture properties and 1919 Market Street development site. 1900 Market Street is currently 76% occupied and will be redeveloped over the next several years with significant interior, exterior and mechanical system upgrades to position the asset as a Class A office building. The redevelopment program will commence in early 2013 and be completed by late 2015 in anticipation of Cozen O'Connor, the building's largest tenant at 203,667 square feet, vacating its lease at expiration in December 2015. In the interim, the building's existing tenant base, current below-market leases and purchase price will provide an attractive yield.
- During the fourth quarter, the $32.1 million acquisition of 7000 West at Lantana, a 136,075 square foot, two-building, Class A office complex located in the Southwest submarket of Austin, Texas. 7000 West at Lantana is 100% occupied through June 2022 by ArthroCare Corporation, and provides operating synergies, an expanded marketing platform and an improved rollover profile for our desirable Southwest Austin portfolio.
- During the fourth quarter, the $2.1 million acquisition of a 10.0 acre parcel of land adjacent to our 2291 Wood Oak Drive building in Herndon, Virginia. The site is currently used for additional parking by our 2291 Wood Oak tenants and can ultimately support a mixed-use project encompassing retail, multifamily or build-to-suit office space.
- Subsequent to year-end, the funding of the remaining $5.9 million of our $25.0 million aggregate investment in One and Two Commerce Square, a 92% occupied, 1.9 million square foot, two-building, Class A office complex located in the central business district of Philadelphia, Pennsylvania. Our investment reflects a preferred 25% stake in these properties which are controlled by affiliates of the Thomas Properties Group Inc.
During the fourth quarter we also completed the following capital market transactions:
- The previously disclosed $250.0 million 3.95% ten-year unsecured note financing due February 15, 2023, generating net proceeds of $246.1 million.
- The previously disclosed tender for a total of $149.9 million of our unsecured notes maturing in 2015 and 2016, incurring a $20.5 million charge on the early extinguishment of debt as well as $0.4 million of accelerated deferred financing charges.
- The previously disclosed optional redemption of all 2.3 million of our 7.375% Series D Cumulative Redeemable Preferred Shares with a total outlay of $58.3 million comprising the $57.5 million par redemption plus $0.8 million of distributions for this partial period. We will recognize a $2.0 million preferred share redemption expense in the fourth quarter of 2012 related to this redemption.
- The repayment of $150.0 million of our $250.0 million unsecured bank term loan due February 1, 2016, incurring a $3.0 million charge on the termination of associated interest rate hedging contracts as well as $0.7 million of accelerated deferred financing charges.
- The pre-payment of the $54.9 million balance on a series of mortgage loans comprising our 7.25% Newtown Square/ Berwyn Park/Libertyview secured financing without penalty and the pre-payment of the $1.1 million balance on our 7.75% Southpoint III mortgage loan with a $60.7 thousand penalty and $19.3 thousand of accelerated deferred financing charges.
- The redemption of 811,984 limited partnership units from the estate of a former unit holder for total cash consideration of $9.7 million reflecting a calculated price of $12.00 per unit.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV