Brandywine Realty Trust Completes 30th Street Post Office and Cira South Garage Projects and Receives Loan Proceeds of $256.5 Million

RADNOR, Pa., Aug. 26 /PRNewswire-FirstCall/ -- Brandywine Realty Trust (NYSE: BDN) announced today that it has completed and delivered the 30th Street Post Office and Cira South Garage projects and as a result, has received $256.5 million of gross proceeds from a previously announced loan financing provided by an affiliate of CTL Capital, LLC that had been escrowed pending completion.  We used the loan proceeds to reduce borrowings under our credit facility and for general corporate purposes.

The 30th Street Post Office project in Philadelphia, Pennsylvania is a $252 million historic rehabilitation of an 862,692 square foot office building which is 100% leased to the Internal Revenue Service (IRS) for a twenty-year term.  The $90 million Cira South Garage project is located across the street from the 30th Street Post Office and consists of a 1,662-car parking structure and 9,788 square feet of retail space which is 93.2% leased overall.  The IRS has accepted possession of the leased premises and will begin moving its approximately 5,000 employees into the property beginning next week.

The financing encompasses individual project loans of $209,700,000 on the Post Office and $46,800,000 on the Garage.  The loans bear interest at 5.93% with interest-only through September 10, 2010 following which they will amortize monthly over a twenty-year period beginning with the October 10, 2010 debt service payment.  The loans are non-recourse and are secured by mortgages on the Post Office and Garage.  

"We are extremely pleased to complete the $342 million 30th Street Post Office and Cira South Garage projects on time and under budget and to close this previously announced financing.  We anticipate receipt of a LEED silver rating during 2011 and want to thank the GSA, Internal Revenue Service, Keating Development Company, Keating Building Company, the entire development team and the Philadelphia trades who worked in tandem on this historic project," stated Gerard H. Sweeney, President and Chief Executive Officer of Brandywine Realty Trust.  "The completion of this project enhances the economic growth of the University City sub-market and restores an important piece of Philadelphia's architectural history."  

Brandywine was advised on the structuring and placement of the financing by CTL Capital, LLC which was advised by the law firm of Duane Morris LLP, and by FBR Capital Markets & Co.  The law firm of DLA Piper and the accounting firm of Reznick Group, P.C. provided additional transaction support to Brandywine.  

About Brandywine Realty Trust

Brandywine Realty Trust is one of the largest, publicly traded, full-service, integrated real estate companies in the United States.  Organized as a real estate investment trust and operating in select markets, Brandywine owns, develops, manages and has ownership interests in a primarily Class A, suburban and urban office portfolio comprising 321 properties and 36.3 million square feet, including 239 properties and 26.0 million square feet owned on a consolidated basis.  For more information, please visit our website at www.brandywinerealty.com.

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of the Company and its affiliates or industry results to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements.  Such risks, uncertainties and other factors relate to, among others, the Company's ability to lease vacant space and to renew or relet space under expiring leases at expected levels, the potential loss of major tenants, interest rate levels, the availability and terms of debt and equity financing, competition with other real estate companies for tenants and acquisitions, risks of real estate acquisitions, dispositions and developments, including cost overruns and construction delays, unanticipated operating costs and the effects of general and local economic and real estate conditions.  Additional information or factors which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the Securities and Exchange Commission.  The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

SOURCE Brandywine Realty Trust