Washington REIT To Sell Medical Office Portfolio For $500.75 Mln - Quick Facts

(RTTNews) - Washington Real Estate Investment Trust or WRIT (WRE) has reached four separate contracts with a single buyer to sell a 100% stake in its medical office portfolio and two office assets including a total of about 1.5 million square feet. The combined sale price amounts to $500.75 million, or $329 per square foot.

The portfolio comprises 17 medical office assets and two suburban office buildings, 6565 Arlington Boulevard and Woodholme Center, and a land parcel in Alexandria, Virginia which is being utilized as off-site/overflow parking for one of the medical office buildings in the portfolio.

The sale would be structured as four independent transactions, each of which would complete as per a separate purchase and sale agreement. The projected closing date for the first two transactions is November 12, 2013, with the outside closing date for the second two transactions being January 31, 2014.

According to the company, the medical office portfolio represents the largest portfolio of institutional quality medical office assets in the Washington, DC region, with all of the assets located near major medical centers like Inova Fairfax Hospital, Shady Grove Adventist Hospital and George Washington Hospital or near affluent communities and urban centers.

WRIT has ideas to make use of the proceeds from the medical office sale to reinvest into high-quality downtown or metro-centric office buildings and well-located retail and multifamily assets.