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Press release from PR Newswire

Brandywine Realty Trust Announces its Brandywine-AI Joint Venture Agreement to Acquire Three Office Properties in Silver Spring, Maryland, Valued at $120.6 Million

Monday, June 25, 2012

Brandywine Realty Trust Announces its Brandywine-AI Joint Venture Agreement to Acquire Three Office Properties in Silver Spring, Maryland, Valued at $120.6 Million09:00 EDT Monday, June 25, 2012RADNOR, Pa., June 25, 2012 /PRNewswire/ -- Brandywine Realty Trust (NYSE:BDN), announced today that its Brandywine-AI Joint Venture (the "Venture") has entered into an agreement to acquire three office properties totaling 499,395 square feet in Silver Spring, Maryland.  The Venture acquired the properties for $120.6 million, or $241 per square foot.  In connection with the acquisition, the Venture has secured $66.5 million of non-recourse property financing with a maturity date of July 2019 and an interest rate of 3.22%.  Subject to customary closing conditions, the acquisition and related financing are scheduled to close July 10, 2012.Properties Acquired by the Joint Venture PropertySquare FeetLeased1100 Wayne Avenue162,83289%1010 Wayne Avenue196,66396%8484 Georgia Avenue139,90094%Total499,39593% The three building portfolio, also known as Station Square, is located in the heart of Silver Spring's CBD and located across the street from the recently renovated transit center.  "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," stated Gerard H. Sweeney, President and Chief Executive Officer of Brandywine Realty Trust. "The Brandywine-AI Venture plans to seek additional office building acquisitions in the Washington DC markets, with particular emphasis on quality properties located near transit and amenities inside the Capital Beltway.""This venture is an important part of our ongoing effort to expand our portfolio of direct investments in commercial real estate and we are pleased to be making a new acquisition alongside Brandywine," said Mike Moran, Managing Director and head of Allstate Investments' real estate investment group.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.  Moore&Associates is a full service commercial real estate investment, development and management firm headquartered in Bethesda, Maryland.About Brandywine-AI Joint VentureThe Brandywine-AI Joint Venture entity is owned equally by Brandywine Realty Trust and Current Creek Investments, a subsidiary of Allstate Insurance Company.Upon completion of the announced transaction, the Brandywine-AI Venture will be comprised of six office buildings, totaling 1.1 million square feet, located on or inside the Beltway in Washington DC Metro.About Brandywine Realty TrustBrandywine Realty Trust is one of the largest, publicly traded, full-service, integrated real estate companies in the United States.  Organized as a real estate investment trust and operating in select markets, Brandywine owns, leases and manages an urban, town center and suburban office portfolio comprising 306 properties and 34.6 million square feet, including 231 properties and 25.1 million square feet owned on a consolidated basis and 53 properties and 6.5 million square feet in 18 unconsolidated real estate ventures. For more information, please visit www.brandywinerealty.com. Forward-Looking StatementsCertain statements in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of the Company and its affiliates or industry results to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements.  Such risks, uncertainties and other factors relate to, among others, the Company's ability to lease vacant space and to renew or relet space under expiring leases at expected levels, the potential loss of major tenants, interest rate levels, the availability and terms of debt and equity financing, competition with other real estate companies for tenants and acquisitions, risks of real estate acquisitions, dispositions and developments, including cost overruns and construction delays, unanticipated operating costs and the effects of general and local economic and real estate conditions.  Additional information or factors which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2011.  The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.SOURCE Brandywine Realty TrustFor further information: Marge Boccuti, Manager, Investor Relations, +1-610-832-7702, marge.boccuti@bdnreit.com