SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 15, 1997
BRANDYWINE REALTY TRUST
(Exact name of registrant as specified in its charter)
MARYLAND 1-9106 23-2413352
-------- ------ ----------
(State or other jurisdiction of (Commission file number) (I.R.S. Employer Identification
incorporation) Number)
16 Campus Boulevard, Newtown Square, Pennsylvania 19073
(Address of principal executive offices)
(610) 325-5600
(Registrant's telephone number, including area code)
Page 1 of 4 pages
Item 5. Other Events
On August 15, 1997, Brandywine Operating Partnership, L.P. (the
"Operating Partnership"), a limited partnership of which Brandywine Realty
Trust (the "Company") is the sole general partner, acquired two office
properties located in Fort Washington, Pennsylvania ("500 and 501 Office
Center Drive" or the "Properties") containing approximately 211,000 net
rentable square feet. As of August 15, 1997, the Properties were
approximately 97% leased to 45 tenants. Advanta and Aetna Insurance each
individually occupy more than 10% of the total net rentable area of the
Properties.
The purchase price for 500 and 501 Office Center Drive totaled $16.9
million. The Operating Partnership paid the purchase price and closing
expenses using borrowings under its existing revolving credit facility.
The seller of 500 and 501 Office Center Drive, Canada Life Assurance
Company (the "Seller"), is a party unaffiliated with the Company and the
Operating Partnership. The Company based its determination of the purchase
price of the Properties on the expected cash flow, physical condition,
location, competitive advantages, existing tenancies and opportunities to
retain and attract additional tenants. The purchase price was determined by
arm's-length negotiation between the Company and the Seller.
-2-
The table set forth below shows certain information regarding rental
rates and lease expirations for 500 and 501 Office Center Drive.
Scheduled Lease Expirations
(500 and 501 Office Center Drive)
RENTABLE SQUARE
YEAR OF NUMBER OF LEASES FOOTAGE SUBJECT FINAL ANNUALIZED PERCENTAGE OF TOTAL
LEASE EXPIRING WITHIN TO EXPIRING BASE RENT UNDER FINAL ANNUALIZED BASE RENT
EXPIRATION THE YEAR AT (1) LEASES EXPIRING LEASES (2) UNDER EXPIRING LEASES
---------- ---------------- --------------- ------------------- --------------------------
1997 16 86,207 $ 833,515 40.6%
1998 16 44,521 443,547 21.6%
1999 9 24,363 258,130 12.6%
2000 8 33,970 354,531 17.3%
2001 2 13,066 137,173 --
2002 1 2,604 27,342 1.3%
2003 -- -- -- --
2004 -- -- -- --
2005 -- -- -- --
2006 and
Thereafter -- -- -- --
-------- ------- --------- --------
Total 52 204,731 $ 2,054,238 100.0%
-------- ------- --------- --------
-------- ------- --------- --------
(1) A lease is considered to expire if, and at any time, it is terminable by
the tenant without payment of penalty or premium.
(2) "Final Annualized Base Rent" for each lease scheduled to expire
represents the cash rental rate in the final month prior to expiration
multiplied by twelve.
After giving effect to the acquisition of 500 and 501 Office Center
Drive, the Company's portfolio consists of 76 office properties and 9
industrial properties that contain an aggregate of approximately 5.3 million
net rentable square feet.
-3-
SIGNATURE
- ---------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BRANDYWINE REALTY TRUST
Date: August 22, 1997 By: /s/ Gerard H. Sweeney
--------------- --------------------------------------------
Gerard H. Sweeney, President and Chief Executive
Officer
(Principal Executive Officer)
Date: August 22, 1997 By: /s/ Mark S. Kripke
--------------- --------------------------------------------
Mark S. Kripke, Chief Financial Officer and
Secretary
(Principal Financial and Accounting Officer)
-4-