WASHINGTON, DC -- Off-Market Transaction of Two Class A Office Properties with High Quality Tenants in Well-Established Washington D.C. Submarket, Consistent with Company's Acquisition Strategy Republic Property Trust (NYSE:RPB) announced today that it has entered into a binding agreement to acquire the fee interest in Willowwood I & II from SMII Fairfax LLC, advised by KBS Realty Advisors, for approximately $66 million. Willowwood I and II, two Class A office buildings totaling approximately 250,000 rentable square feet, are a part of a four-building office complex known as Willowwood Plaza in Fairfax, Virginia. Republic Property Trust currently owns the other two buildings in the park, Willowwood III and IV. The transaction is scheduled to close in approximately 60 days.
Completed in 1988, Willowwood I & II are mirror image five-story brick buildings totaling approximately 250,000 rentable square feet. The buildings share a central common area with Willowwood III & IV, complete with a landscaped plaza and fountain. The property is strategically located in Northern Virginia's Fairfax submarket at the intersection of two major transportation networks, Route 123 and Interstate Route 66. Republic is acquiring the property with over 90% of the space leased to tenants including Tetra Tech, Inc., Qwest and the U.S. General Services Administration's Federal Technology Service. The Company believes that a substantial percentage of the Property's net rentable square feet is leased at rental rates 10-15% below the market average of $28.50/sf.
The acquisition continues Republic Property Trust's strategy to acquire assets off-market versus in a competitive bidding process. Additionally, Willowwood I & II are substantially-leased institutional-grade office buildings that provide high levels of functionality and support existing tenants' long-term space requirements within the entire office park. The properties are located in Fairfax, a well-established submarket of Greater Washington, D.C. that possesses substantial commercial infrastructure and is accessible to major transportation networks.
Chief Executive Officer Mark Keller commented that "this acquisition provides distinct opportunities for value creation to shareholders by consolidating Willowwood Plaza under our ownership to create operating efficiencies. The below market rental rates will allow us to capitalize upon the improving market conditions and increasing rental rates. The acquisition will further diversify our tenant base of government agencies and nationally recognized corporations and will also enable us to offer our existing tenants additional space options as they continue to expand throughout the office park." Upon completion of this transaction, Republic Property Trust's portfolio will consist of 12 Class A office properties, representing approximately 2.2 million square feet, in Greater Washington, D.C.
The Company expects to fund the acquisition through a combination of mortgage debt and the Company's proposed secured revolving credit facility. The acquisition is projected to contribute approximately $1.1 million to Funds from Operations (FFO) in the 12 months following closing.
About Republic Property Trust
Republic Property Trust is a fully integrated, self-administered and self- managed real estate investment trust formed to own, operate, acquire and develop primarily Class A office properties. The Company's current portfolio is focused in the Washington, D.C. metropolitan, or Greater Washington, D.C., market. Republic Property Trust also selectively seeks fee-based development opportunities for all real estate classes in various geographic areas inside and outside of Greater Washington, D.C.
Safe Harbor
Certain statements in this press release may 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 which may cause the actual results of the Company to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including without limitation: national and local economic, business, real estate and other market conditions; the competitive environment in which the Company operates; financing risks; property management risks; the level and volatility of interest rates; financial stability of tenants; the Company's ability to maintain its status as a REIT for federal income tax purposes; acquisition, disposition, development and joint venture risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally. The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, which discuss these and other factors that could adversely affect the Company's results.
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Source: Republic Property Trust
CONTACT: Mike Green of Republic Property Trust, +1-202-863-0300,
MGreen@RPBTrust.com
About This Release
If you have any questions regarding information in this press release, please contact the organization listed in the press release. Issuers of press releases and not TCI are solely responsible for the accuracy of the content.
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