Silver Spring’s Station Square Sold for $120.6M
- Jun 30, 2012
Brandywine Realty Trust announced on Monday, June 25, that its Brandywine-AI Joint Venture has agreed to purchase three office properties in Silver Spring, Md. The acquisition price for the three-building portfolio was $120.6 million, or $241 per square foot.
Known as Station Square, the portfolio totals 499,395 square feet. It consists of 1100 and 1010 Wayne Ave., along with 8484 Georgia Ave. The three buildings are located in Silver Spring’s CBD, across the street from the recently renovated transit center.
1100 Wayne Ave. is known as The Colonnade at Station Square. The 162,832-square-foot building was constructed in 1982 and is 89 percent leased. 8484 Georgia Ave., The Plaza at Station Square, was built in 1984. The 139,900-square-foot property is 94 percent leased. 1010 Wayne Ave. was built in 1987. Known as The Atrium at Station Square, it totals 196,663 square feet and is 96 percent leased.
The seller is a joint venture between Urdang’s Value-Added Fund II and Moore&Associates. Urdang is the real estate investment management subsidiary of BNY Mellon, while Moore&Associates is a Bethesda-based full-service commercial real estate investment, development and management firm. Moore&Associates developed the Station Square office complex and sold it in 2005, only to repurchase it in 2009 with the help of Urdang Value-Added Fund II L.P.
The purchasers secured $66.5 million of non-recourse property financing with a maturity date of July 2019 and an interest rate of 3.22 percent. Subject to customary closing conditions, the acquisition and related financing are scheduled to close on July 10, 2012.
“We are excited that our venture is acquiring three well-located and metro-served assets in Silver Spring’s CBD at a significant discount to replacement cost,” Gerard Sweeney, Brandywine’s president & CEO, said in a press release. With the new acquisition, the venture’s portfolio will now comprise six office buildings totaling 1.1 million square feet and located on or inside the Beltway in the Washington, D.C., Metro area.
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Photo of The Atrium at Station Square courtesy of Moore&Associates.