CoStar: REITs Will Be Big Sellers in 2016

CoStar Group has reviewed over 80 year-end and fourth quarter earnings reports, along with 2016 outlines, for publicly traded REITs and is projecting a majority of the nation’s publicly traded REITs and real estate companies expect to be big sellers of properties this year, according to a new article. With three times as many REITs projected to be net sellers compared to net buyers, the reviewed companies have disclosed an expectation to sell more than $20.7 billion in properties this year, while only anticipating $9.8 billion in acquisitions.

"Even though the year started with choppy financial markets, we continue to benefit from a very strong real estate market and we expect 2016 to be another very good year," said Bill Hankowsky, chairman, president and CEO of Liberty Property Trust, citing "strong demand from the investment buyer universe."

"Our overall disposition efforts have resulted in a significant reduction of our non-core holdings in Pennsylvania, New Jersey, Delaware, Richmond and Northern Virginia," stated Gerard Sweeney, Brandywine Realty Trust's president and CEO. "In addition, these transactions significantly increase our financial capacity, reduce debt and provide ample liquidity for our development pipeline."

"We expect to complete, including the pending investments announced today, between $750 million to $1 billion of total real estate investments in 2016, subject to favorable capital market conditions," said John Thomas, president and CEO of Physicians Realty.

For more news and information visit Blumberg Partners.

Brandywine Completes Sale of NJ Office Buildings for $56.5M

Radnor, PA-based Brandywine Realty Trust announced this week that it has completed the sale of six suburban office buildings in Mount Laurel, New Jersey for $56.5 million, and secured a $130 million loan for the refinancing of One Commerce Square in Philadelphia, Pennsylvania. Terms for the sale of the 560,100 square foot portfolio was not disclosed, nor were the actual addresses of the buildings or buyer's names included in a company press release, but Brandywine did indicate that it had received $65.8 million of net proceeds and expected to use the net proceeds to fund current development commitments, reduce debt and general corporate purposes.

"The transactions reinforce our stated goals of prefunding our development pipeline and further improving our financial capacity through accelerated dispositions," stated Gerard Sweeney, President and Chief Executive Officer of Brandywine Realty Trust, in a press release last week outlining similar property sales. "The other asset sales represent our continued efforts to reduce our ownership in non-core assets and markets. As evidenced by these transactions, the current investment market remains strong and, consistent with our 2016 guidance, we anticipate additional sales between now and the first half of 2016."

For more news and information visit Blumberg Partners.

Subaru Breaks Ground on Camden HQ

Subaru of America, Inc. broke ground this week on an all-new $118 million corporate headquarters in Camden, NJ, adjacent to Campbell Soup Company's world headquarters. The Subaru of America campus will be the first new corporate headquarters in Knights Crossing, a master plan urban town center community, being developed by Brandywine Realty Trust. The new facility, at 250,000 square feet, plus an additional building at 83,000 square feet will be more than double the size of its current headquarters building and will bring employees from four sites onto one campus; Subaru expects the development to be complete in 2017.

"We are delighted to contribute to the revitalization of Camden and look forward to Knights Crossing becoming a significant catalyst to the renaissance taking place in Camden," said Gerard Sweeney, president and chief executive officer of Brandywine Realty Trust. "We're especially honored to be developing this state-of-the-art campus for such a well-renowned and admired company as Subaru of America. Subaru's decision, coupled with the long-standing commitment by Campbell, provides an excellent platform for further economic development and job creation in the city of Camden."

Thomas Doll, president and chief operating officer of Subaru of America, added: "We are very excited to be moving this project forward as we seek to bring our family of employees together on one site. This signing cements the long-term future of Subaru in the Delaware Valley and we are pleased that, after almost 50 years here, we can plan to continue to be a part of the local community we have supported for so long."

"Today not only signifies a long-term commitment by Subaru to the region, but now to our city and, yes, to our residents," Camden Mayor Dana Redd said at the groundbreaking ceremony. "To say this is an incredible investment to our city and region is an understatement." Subaru announced the move a year ago, after the state Economic Development Authority awarded the company $118 million in tax incentives under the Economic Opportunity Act to move from its Cherry Hill location, about four miles away. The credits, spread over 10 years, are conditional on Subaru creating or saving at least 250 jobs in the city and remaining in Camden for at least 15 years. Video of the groundbreaking ceremony can be seen here. For more news and information visit Blumberg Partners.

Campbell Picks BRT for Gateway District Development

Campbell Soup Co. announced this week that it had selected Brandywine Realty Trust, the PA-based REIT, as the developer of the mixed use development for Camden's Gateway District. The designation follows the approval of the Camden Redevelopment Agency, which gave the greenlight to develop the new complex on 13 acres located off Newton Avenue between Admiral Wilson Boulevard and 11th Street in Camden, NJ. Under the terms of the agreement, Brandywine will acquire several properties that Campbell has acquired and prepared them for redevelopment. Full terms of the deal were not disclosed.

"Brandywine is a perfect fit for this project. Brandywine has consistently demonstrated a clear focus on high-quality, well-designed urban development and their experience will be an important catalyst to establishing the Gateway District as a sought after business center," said Richard Landers, Campbell's Vice President of Tax and Real Estate. at Campbell Soup Co. in a statement. "Today marks an important step in the revitalization of Camden's Gateway District that will help create jobs and spur economic growth."

"We are honored to have been chosen by Campbell as the developer for the Gateway District Development," added Gerard Sweeney, President and Chief Executive Officer of Brandywine Realty Trust. "The Gateway District Development, adjacent to the internationally renowned Campbell Soup Company, will be an important component in revitalizing the city of Camden and the opportunity is consistent with Brandywine's philosophy of developing multi-modal, office and mixed-use, town center developments of consequence. "

For more news and information visit Blumberg Capital Partners.

Brandywine Sells Herndon Office Building for $91.1M

Brandywine Realty Trust announced this week that it had sold a 268,240 square foot office building located in Herndon, Virginia for $91.1 million, or $340 per square foot, to Wells Core Office Income REIT. Cassidy Turley marketed the property for sale on behalf of Brandywine.

"The sale of this property achieves our objective of maximizing value from our existing portfolio," stated Gerard H. Sweeney, President and Chief Executive Officer of Brandywine Realty Trust. "It strengthens our balance sheet by providing additional liquidity, provides additional capital for our investment activities and demonstrates our commitment to execute key components of our 2012 business plan."

Brandywine completed the development of this property known as South Lake at Dulles Corner in November 2008, with design work from Noritake Associates, and subsequently leased the entire building to Time Warner Cable Inc. according to a NASDAQ report. Last May, citybiz real estate reported that Brandywine was looking to sell some of its Northern Virginia assets so it could target commercial properties located within the Beltway and within the District.

For more news and information visit Blumberg Capital Partners.