Washington REIT (WRE) announces $461 million multifamily acquisition.
Washington REIT (WRE) announced today that it has entered into an agreement to acquire seven Class-B multifamily properties (2,113 units) for an aggregate purchase price of $461 million. The acquisition is expected to close in the second quarter of 2019. WRE has obtained commitments from its bank group to provide bridge financing for the purchase, but ultimately expects to sell "select commercial assets" to return leverage to the 6.0x-6.5x range by year end.
The seven communities are 95% occupied and located in Northern Virginia (80%) and Maryland (20%). The properties are being purchased with a value-add renovation strategy designed to take advantage of currently wide "market...differentials between Class-A and Class-B rents."
WRE said it will update 2019 earnings guidance following completion of the expected asset sales.