Brandywine Realty Trust (NYSE: BDN
) has closed on its previously announced acquisition
of its remaining common ownership interest of One and Two Commerce Square in Philadelphia, PA for approximately $248.87 million, or about $175 per square foot.
Parkway Properties sold its 75% interest in the asset in a deal that values the properties at $331.8 million, following its $1.2 billion merger with Thomas Properties
completed in December.
The acquisition was funded in part with available corporate funds and the assumption of $237.1 million in existing mortgage debt secured by the two properties.
Commerce Square consists of two 41-story, 4-Star office buildings constructed in 1987 and 1992 and renovated in 2013. At 2001 and 2005 Market St., the two properties total almost 1.9 million square feet and occupy an entire city block between 20th and 21st Streets in the Market Street West submarket. The Court at Commerce Square, the buildings' central plaza, offers ground-floor retail, restaurants, and underground parking for 525 cars.
Brandywine will handle management and leasing of the properties going forward. The asset is currently 87 percent leased to multiple tenants including Delaware Investments, Ernst & Young, Pricewaterhouse Coopers, and Wolters Kluwer Health.
In a separate deal, Brandywine acquired Thomas Properties' Four Points Centre in Austin, TX for $47.3 million. Read CoStar News' coverage of the sale, Brandywine Wraps Up Year-End Acquisition of Four Points Centre
"We are delighted to complete the Commerce Square and Four Points Centre transactions and congratulate the Parkway and Thomas teams on the closing of their transaction," stated Gerard H. Sweeney, president and chief executive officer of Brandywine Realty Trust.
Reportedly both parties handled the Commerce Square sale in-house. Please see CoStar COMPS #2913986 for additional information on this transaction.