{"id":1004540107,"date":"2021-06-16T02:59:58","date_gmt":"2021-06-16T10:59:58","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004540107"},"modified":"2022-12-08T12:08:18","modified_gmt":"2022-12-08T20:08:18","slug":"washreit-to-sell-office-portfolio-for-766m","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/washreit-to-sell-office-portfolio-for-766m\/","title":{"rendered":"WashREIT to Sell Office Portfolio for $766M"},"content":{"rendered":"
\"Arlington<\/a>

Arlington Tower. Image courtesy of WashREIT<\/p><\/div>\n

WashREIT is accelerating its transformation into a multifamily REIT focusing on the Southeast, as it continues to shed more of its office properties. The REIT has entered into a definitive agreement to sell 12 office assets in the Washington, D.C., metro area, including six in Northern Virginia, to a Brookfield Asset Management private real estate fund for $766 million.<\/p>\n

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READ ALSO<\/strong>: Mack-Cali Sells Last Suburban Office Portfolio for $84M<\/a><\/p>\n

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The portfolio, totaling nearly 2.4 million square feet, represents most of the REIT\u2019s office holdings. After the transaction closes, likely in the third quarter, WashREIT will only own Watergate 600, a Class A, 295,000-square-foot office building at 600 New Hampshire Ave. NW, in Washington, D.C. The company intends to eventually dispose of that property and will then become a 100 percent pure-play multifamily REIT. It acquired the 12-story office property within the Watergate complex<\/a> in April 2017 for about $135 million.<\/p>\n

WashREIT also signed a letter of intent to sell its remaining retail assets and expects to complete this sale in the third quarter as well. No further details were available on the retail transaction.<\/p>\n

Paul McDermott, president & CEO of the Washington, D.C.,-based REIT, said in a prepared statement the pending sale to the Brookfield Asset Management fund is the most significant milestone to date in the transformation of the company to a multifamily REIT.<\/p>\n

\u201cThis transaction, along with sourcing multifamily expansion opportunities and our retail sales processes, signals our belief that the multifamily asset class is the best vehicle to harness long-term growth for our investors,\u201d McDermott stated.<\/p>\n

He noted the pending sale of the office and retail assets will strengthen the REIT\u2019s balance sheet and eliminate near-term debt maturities until 2023. McDermott said it will also give WashREIT the resources to expand its multifamily efforts in Southeastern markets. The company is targeting expansion into the high-growth markets of Atlanta and Raleigh-Durham and Charlotte in North Carolina. The REIT already owns 21 multifamily assets in the D.C. metro area and plans to invest about $450 million this year on growing the multifamily portfolio.<\/p>\n

Office sales<\/strong><\/h2>\n

In December, WashREIT closed on the $106.5 million disposition of two office properties<\/a> totaling 344,346 square feet in the D.C. metro region\u2014Monument II at 12590 Worldgate Drive in Herndon, Va., and 1272 25th St. NW., in Washington, D.C.<\/p>\n

The 12-property portfolio under contract consists of six office buildings in Washington, D.C., and six in Northern Virginia. As of May 31, the portfolio was about 83 percent occupied.<\/p>\n

The Washington, D.C., properties are: 1901 Pennsylvania Ave., 101,000 square feet; 1220 19th St., 103,000 square feet; 2000 M St., 34,000 square feet; 1140 Connecticut Ave., 184,000 square feet; Army Navy Building, 108,000 square feet; and 1775 Eye St., 189,000 square feet.<\/p>\n

One of the Virginia properties is Silverline Center, a 552,000-square-foot office building in Tysons, Va. Three are in Arlington, Va.\u20141600 Wilson Blvd., 171,000 square feet; Fairgate at Ballston, 144,000 square feet; and Arlington Tower, 389,000 square feet<\/a>. Two of the office assets are in Alexandria, Va.\u2014505 King St., 75,000 square feet, and Courthouse Square, 121,000 square feet.<\/p>\n

JLL served as WashREIT\u2019s exclusive real estate advisor in connection with the office and retail portfolio sales. Goldman Sachs & Co. LLC is serving as exclusive strategic financial advisor to the company.<\/p>\n","protected":false},"excerpt":{"rendered":"

The company plans to divest the properties in Washington, D.C., and Northern Virginia as it moves to become a pure-play multifamily REIT.<\/p>\n","protected":false},"author":1068,"featured_media":1004540130,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21783,11,21742,21747,1615],"tags":[33496,33435,32796,34729,34728],"class_list":["post-1004540107","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-investment","category-midatlantic","category-latest","category-office","category-washington-dc","tag-brookfield-asset-management","tag-goldman-sachs","tag-jll","tag-paul-mcdermott","tag-washington-reit"],"acf":[],"yoast_head":"\nWashREIT to Sell Office Portfolio for $766M - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/washreit-to-sell-office-portfolio-for-766m\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"WashREIT to Sell Office Portfolio for $766M\" \/>\n<meta property=\"og:description\" content=\"The company plans to divest the properties in Washington, D.C., and Northern Virginia as it moves to become a pure-play multifamily REIT.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/washreit-to-sell-office-portfolio-for-766m\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-16T10:59:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-08T20:08:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/06\/Arlington-Tower_VA.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/washreit-to-sell-office-portfolio-for-766m\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/washreit-to-sell-office-portfolio-for-766m\/\",\"name\":\"WashREIT to Sell Office Portfolio for $766M - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/washreit-to-sell-office-portfolio-for-766m\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/washreit-to-sell-office-portfolio-for-766m\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/06\/Arlington-Tower_VA.jpg\",\"datePublished\":\"2021-06-16T10:59:58+00:00\",\"dateModified\":\"2022-12-08T20:08:18+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/washreit-to-sell-office-portfolio-for-766m\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/washreit-to-sell-office-portfolio-for-766m\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/washreit-to-sell-office-portfolio-for-766m\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/06\/Arlington-Tower_VA.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/06\/Arlington-Tower_VA.jpg\",\"width\":800,\"height\":600,\"caption\":\"Arlington Tower. 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