OPI Sells 34-Building Portfolio in Metro DC for $199M
By Chava Gourarie February 13, 2019 5:30 pmreprints
Office Properties Income Trust has sold a portfolio of 34 commercial buildings in the Washington, D.C. metro area for $198.5 million, according to a press release from the company.
The portfolio spans roughly 1.6 million square feet and comprises seven commercial campuses in the suburban D.C. area, including the five-building Snowden Center in Columbia, Md., seven buildings at Sterling Park in Sterling, Va., and the seven-building Ammendale Commercial Center in Beltsville, Md.
A Newmark (NMRK) Knight Frank team of Jud Ryan, James Cassidy, Cris Abramson, and Brian Kruger represented OPI in the deal.
“The offering was a very competitive process as bidders were attracted to the scale, diverse tenancy and value-add potential of the properties,” NKF’s Cassidy said in a prepared statement. “While we agreed to terms a couple of months ago, the sheer size of the portfolio with 34 buildings and 133 tenants and the fact that the buyer required financing necessitated a longer closing period,” he added.
OPI, a real estate investment trust with a national portfolio, was formerly the Government Properties Income Trust, and changed its name after merging with Select Income REIT in 2018. As of September 2018, OPI owned 213 properties totaling 30.2 million square feet, valued at $5.8 billion, according to National Real Estate Investor. The REIT’s tenants were mostly located in Texas, California and the D.C. metro area.
The sale of the DC portfolio completes $521 million in sold assets since the REIT’s acquisition of First Potomac Realty Trust (FPO) in 2017, according to a statement form OPI CEO David Blackman, and completes its disposition plan for that transaction.
NKF did not provide the name of the buyer, and OPI did not answer requests for comment.