Washington REIT decreases its retail inventory, increases multifamily exposure

Washington REIT has completed the sale of eight major area shopping centers, reducing its retail exposure.

“By year-end, we expect to have significantly de-risked and strengthened our cash flows and recycled approximately 75 percent of the large capital gains embedded in our retail portfolio,” said Paul McDermott, WashREIT president and CEO.

The sales price was $562 million, with recognized net gains of approximately $339 million.

The portfolio totaled 1.652 million square feet.

The buyer of five of the eight properties is First Washington Realty, which acquired Bradlee Shopping Center, Alexandria, Va.; Shoppes of Foxchase, Alexandria, Va.; Olney Village Center, Olney, Md.; Wheaton Park, Wheaton, Md.; and Gateway Overlook, Columbia, Md. The sales price was $485 million.

Acadia Realty Trust, on behalf of its Fund V, a 90 percent partner in the joint venture with DLC Management Corp., closed on a two-asset portfolio totaling $54.9 million. Both assets are in Frederick, Md., a growing market ideally positioned as a suburb to both Washington, D.C., and Baltimore. The assets include Frederick Crossing and Frederick County Square.

The final asset, Centre at Hagerstown in Hagerstown, Md., was acquired by Continental Realty Corp. for $23.5 million.

On the buying side, WashREIT recently acquired the Cascade at Landmark Apartments in Alexandria, Va., a 277-unit, urban infill, value-add multifamily asset for approximately $70 million.