A stake in more than 2 million square feet of Richmond office space has changed hands as part of a three-state, $400 million deal between two out-of-town real estate firms.
Pennsylvania-based Brandywine Realty Trust last month sold 50 percent of its ownership in dozens of office buildings in the city and Henrico and Chesterfield counties. New York-based Och-Ziff Capital Management Group picked up the 50 percent and now owns the properties along with Brandywine through a newly created entity called Map Fee Owners LLC.
The local transactions, most of which closed Feb. 17, were announced late last year as part of a larger deal that encompassed the sale of 58 properties in Northern Virginia, Pennsylvania and New Jersey, totaling $398.1 million.
Richmond made up the largest chunk of the overall deal with a stake in 34 properties being sold, according to a Brandywine release. Of those, 30 have transferred to date in local real estate records showing a combined price tag of more than $115 million.
In a recorded earnings conference call, Brandywine CEO Jerry Sweeney said the deal accounts for 100 percent of the company’s inventory in Richmond.
Brandywine is the managing member of the joint venture with Och-Ziff, Sweeney said in the conference call. It will also remain the overall asset manager of the portfolio. The company did not give a per-building breakdown of what Och-Ziff paid for its 50 percent of each individual property.
Representatives with Brandywine did not return a request for comment by press time.
Och-Ziff President Steven E. Orbuch reiterated in an emailed statement that the Richmond portfolio is a big portion of its new investment.
“We are highly motivated to continue the success of the Richmond assets and deeply committed to the overall market,” Orbuch said. “We look forward to a long-term relationship with our new partner, Brandywine Realty Trust, as well as with the city of Richmond more broadly.”
Most of the Richmond properties are located along Dabney Road in Henrico County and in the Arboretum and Boulders office parks in Chesterfield County. In total, all 34 properties were almost 96 percent leased as of the fourth quarter of last year, according to the news release.
The deal also included three properties in Northern Virginia, 10 in New Jersey and 11 in Pennsylvania.
Brandywine does still own some properties in Charlottesville, but now most of the firm’s Virginia real estate is part of the joint venture with Och-Ziff.
Both Brandywine and Och-Ziff were founded in 1994. Och-Ziff currently manages over $43 billion in assets worldwide.