Friday, July 26, 2013

Big real estate swap in Conshohocken

by Natalie Kostelni-Staff Writer, Philadelphia Business Journal

Brandywine Realty Trust and Oliver Tyrone Pulver have swapped their respective interests in two office buildings in Conshohocken, Pa.
Brandywine said it exchanged its 35 percent interest in Two Tower Bridge, a four-story, 83,000-square-foot office building, for Pulver’s 37 percent interest in Six Tower Bridge, a five-story, 116,000-square-foot office property.
As a result of this transaction, Brandywine said in a statement that it achieved several things. It eliminated two equity interests with a $13.1 million book value; achieved sole consolidated ownership of Six Tower, which is 73.2 percent occupied; took a $7.8 million gain on its investment in Six Tower based on its $24.5 million fair market value at the time of the deal; and gained $3.7 million on the exchange of its interest in Two Tower based on its $3.6 million fair market value.
Analysts from Cantor Fitzgerald Equity Research who track real estate investment trusts noted that Brandywine has an interest in 19 joint ventures totaling $179 million. This may leave Brandywine exposed to partners that “may have objectives that differ from Brandywine, which could affect the overall strategy of the individual joint venture assets,” and, in general, leave it exposed, the report said.
It couldn’t be determined what drove the swap. Officials from Brandywine and Oliver Tyrone Pulver couldn’t be immediately reached for comment.
It appears from Pulver’s website that Brandywine continues to carry an interest in Seven Tower Bridge, a 14-story 260,000-square-foot building that has yet to be constructed.
In an unrelated transaction, Brandywine paid $20.8 million for the 1.8-acre parcel on where Three Logan Square stands in Center City.

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