Washington Real Estate Investment Trust (WRE - Free Report) recently announced the acquisition of a nine-storied, 223,000 square feet office building named John Marshall II for $73.5 million. The building is located at the Tysons Central 7 metro station in Tysons Corner, Virginia.
The acquisition was funded by a mortgage loan of $54.1 million and proceeds from the recent sale of the company’s industrial assets and its line of credit.
John Marshall II is a Class A office property, which is currently 100% leased to Booz Allen Hamilton Inc located at 8283 Greensboro Drive, and serves as its worldwide headquarters. This office property is strategically located for mixed-use development and is expected to generate stable cash flows from its tenant going forward.
Washington Real Estate is emphasizing on its long-term strategy to bring renewed focus to the area immediately surrounding the metro station. Recently, the company also acquired Braddock Place, a 345,000 square foot office campus in Alexandria, Virginia, for $101 million located within the Braddock metro neighborhood plan. The company expects to make some capital improvements to modernize the surrounding area and generate long-term rental growth in future.
Washington Real Estate invests in income-producing properties in the greater Washington metro region. It owns a diversified portfolio of 75 properties spanning approximately 9 million square feet of commercial space and 2,540 residential units and lands held for development.
Washington Real Estate currently retains a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. We are also maintaining our long-term “Neutral” recommendation on the stock. One of its competitors, Kimco Realty Corporation (KIM - Free Report) ,also holds a Zacks #3 Rank.