Washington Real Estate Investment TrustWRE recently announced that it has decided to buy Arlington Tower, a 398,000-square foot, Class A office building for $250 million. The tower is located at Rosslyn submarket in Arlington, VA. The deal, which is subject to certain closing conditions, is expected to close in the first quarter of 2018.
Arlington Tower is situated at 1300 North 17th Street, which is two blocks from the Rosslyn Metro station. The tower also has a Walk Score® of 95 and offers direct traveler access to Route 50, Interstate 66 and the George Washington Parkway. In the past five years, this 19-story building, which enjoys panoramic river and monument views, has undergone significant renovation costing approximately $16 million.
A non-binding letter of intent to sell 2445 M Street NW - its 292,000-square foot DC office building - has also been initiated by Washington REIT with an institutional buyer. The property's sole tenant, the Advisory Board Company, is likely to vacate it on May 31, 2019. The proceed of the sale, which is subject to certain conditions, will be announced once it enters into a definitive contract with the buyer.
The company, which had earlier announced the sale of Braddock Metro Center, has entered into a definitive agreement and is likely to close the deal in this month, subject to certain conditions.
Paul T. McDermott, president and chief executive officer of Washington REIT, noted, "We are strategically allocating capital out of 2445 M Street and into Arlington Tower to improve our long-term growth prospects in a resurging Rosslyn, while de-risking the portfolio through increased cash flow stability and reduced exposure to single-tenant assets."
Shares of Washington REIT have lost 6.9% in the past six months, against the decline of 1% recorded by the industry it belongs to.
Currently, the stock carries a Zacks Rank #4 (Sell).
Stocks That Warrant a Look
Arbor Realty Trust ABR witnessed an upward earnings estimate revision of 8.7% for 2017, in the last 60 days. Also, its shares have gained 2.7%, in the past six months. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Easterly Government Properties' DEA Zacks Consensus Estimate has been revised nearly 1% upward for 2017, over the last 60 days. Also, its shares have inched up 0.7%, in six months' time. It carries a Zacks Rank #2 (Buy).
One Liberty Properties OLP witnessed an upward earnings estimate revision of 7.1% for 2017, in the last 60 days. Also, its shares have gained 9.6%, in the past six months. It has a Zacks Rank #2.
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