Washington Real Estate Investment Trust Acquires 2445 M Street for $181.4 Million
ROCKVILLE, Md.--(BUSINESS WIRE)-- Washington Real Estate Investment Trust (WRIT) (NYSE:WRE) has acquired 2445 M Street, a Class A office building with a two-level parking garage in Washington, DC for $181.4 million. 2445 M Street is located in the established West End neighborhood, on the northeast corner of 25th and M Streets, strategically positioned between Georgetown and the Central Business District.
The property is 100% occupied by two high-quality tenants under long-term leases and consists of 290,000 net rentable square feet. WRIT assumed a $101.9 million loan with an interest rate of 5.619% per annum and the remaining balance was funded through our line of credit and cash from our most recent equity offering. WRIT expects to achieve a first-year, leveraged yield of 6.7% on a cash basis and 7.2% on a GAAP basis.
WRIT is a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the greater Washington metro region. WRIT's dividends have increased every year for 38 consecutive years. WRIT owns a diversified portfolio of 93 properties consisting of 14 retail centers, 28 office properties, 17 medical office properties, 22 industrial/flex properties, 12 multi-family properties and land for development. WRIT shares are publicly traded on the New York Stock Exchange (NYSE:WRE).
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors include, but are not limited to, the effect of the current credit market and financial conditions, dependence on tenants' financial conditions, fluctuations in interest rates, levels of competition, the effect of government regulation, the availability and cost of capital, the timing and pricing of lease transactions, the impact of newly adopted accounting principles, changes in general and local economic and real estate market conditions, and other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2007 Form 10-K and our third-quarter 2008 Form 10-Q. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Source: Washington Real Estate Investment Trust
Released December 3, 2008