Washington Real Estate Investment Trust (WRIT) (NYSE:WRE) has acquired West Gude Office Park, The Ridges, and Crescent office buildings for $94.0 million. Totaling 442,467 SF, the acquisition represents an opportunity to acquire a variety of well-located, high-quality office buildings throughout Montgomery County.
West Gude, which consists of four multi-story office buildings totaling 289,491 SF, benefits from a strong tenant base of technology firms and educational institutions and is conveniently situated off I-270. The Ridges, a three-story medical office building, and The Crescent, two single-story office buildings, total 152,976 SF and are centrally located in Gaithersburg within close proximity to U.S. regulatory agencies, numerous biotech facilities and several of the area's largest hospitals. The entire portfolio is 95.6% occupied.
The portfolio will substantially increase WRIT's presence within the growing region of Montgomery County with well-positioned assets while improving the overall quality of our office product. WRIT expects to achieve a first-year, unleveraged yield of 6.6% on a cash basis, 7.1% on a GAAP basis.
WRIT will assume two loans totaling $57.3 million at a weighted average interest rate of 5.84%. The remaining $36.7 million will be funded through our line of credit.
WRIT is a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the greater Washington/Baltimore metropolitan region. WRIT owns a diversified portfolio of 82 properties consisting of 14 retail centers, 24 office properties, 13 medical office properties, 22 industrial/flex properties, 9 multi-family properties and land for development. WRIT shares are publicly traded on the New York Stock Exchange (NYSE:WRE).
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors include, but are not limited to, fluctuations in interest rates, availability of raw materials and labor costs, levels of competition, the effect of government regulation, the availability of capital, weather conditions, the timing and pricing of lease transactions, and changes in general and local economic and real estate market conditions.