Top Stories

PHILADELPHIA — Brandywine Realty Trust (NYSE: BDN), a Radnor, Pa.-based REIT, has entered into an agreement to dispose of its interests in Cira Square, a 29-story, 862,700-square-foot office tower in Philadelphia, for $354 million. The former U.S. Post Office complex is located in the University City submarket and was fully leased at the time of sale to the U.S. General Services Administration. The primary tenant is the Internal Revenue Service. “The sale of Cira Square reflects our ability to both create and harvest value and will generate a significant gain to our shareholders,” says Gerard Sweeney, president and CEO of Brandywine Realty Trust. The buyer is a South Korean fund sponsored by Seoul-based Korea Investment Management Co., according to the Philadelphia Daily News. Brandywine expects to close the transaction in the first half of the first quarter 2016. In connection with the anticipated sale, the REIT plans to prepay the current mortgage totaling $177.4 million. After the transaction, Brandywine will continue to provide management services at the property. In addition to the sale, the company anticipates prepaying the Cira Centre South Garage mortgage totaling $35.5 million, which will unencumber the 1,662-space facility. The REIT acquired the office building in 2007 …

NEW YORK CITY — Blank Rome LLP represented Wells Fargo Bank, N.A., in the closing of a $2.7 billion loan under the Fannie Mae DUS program for the acquisition of Stuyvesant Town-Peter Cooper Village, the largest apartment complex in New York City. The mixed-use apartment complex includes more than 11,000 units and was acquired by The Blackstone Group, in partnership with Ivanhoe Cambridge Inc., from CWCapital Asset Management for a total purchase price of $5.3 billion. As part of the financing structure, the City of New York and the purchaser agreed that 5,000 apartments be designated as affordable housing units for a period of no less than 20 years. Under the binding regulatory agreement entered into by the parties at closing, the majority of these units will be allocated to middle-income families. The transaction is part of the City of New York’s plan to build and/or preserve 200,000 affordable housing units over a 10-year period. It is the largest single transaction to support the preservation of affordable housing in New York City’s history, according to Blank Rome. Deborah Franzblau and Carmen Pagan led the Blank Rome team, and were assisted by Toni Jordan, Krishana Pleasant and Rhina Roberts. — Haisten Willis …

ATLANTA — WellStar Health System, a Marietta, Ga.-based healthcare provider, has agreed to purchase five Atlanta-area hospitals and related operations from Tenet Healthcare Corp. (NYSE: THC). The purchase price is $575 million, according to the Atlanta Business Chronicle. The five hospitals are North Fulton Hospital, Spalding Regional Hospital, Sylvan Grove Hospital, Atlanta Medical Center and its South Campus, as well as complementary physician practices and businesses. The transaction also includes 26 physician clinic locations. The facilities comprise 1,192 beds, 4,300 employees and 1,390 doctors, according to the Business Chronicle. Cain Brothers served as Dallas-based Tenet’s financial advisor to negotiate the terms of the transaction. In addition to the purchase price, WellStar will assume $86 million in debt related to the lease of North Fulton Hospital, the Business Chronicle reports. Earlier this year, Tenet detailed its plans to exit the Georgia market. The transaction is subject to customary regulatory approvals and other closing conditions and is expected to be completed the first quarter of 2016. Tenet’s stock price closed on Monday, Dec. 21, at $30.59 per share, down from $51.85 per share a year ago. — Scott Reid

PLYMOUTH MEETING, PA. — A joint venture between Henley Holding Co., a subsidiary of the Abu Dhabi Investment Authority (ADIA), and the Public Sector Pension Investment Board (PSP Investments) has acquired a 58-million-square-foot portfolio of core industrial properties from Exeter Property Group for $3.1 billion. The properties were owned and managed by Plymouth Meeting-based Exeter, which will continue to manage the properties.   The portfolio consists of 209 assets that are located in 25 key distribution markets. The majority of the properties are modern bulk warehouses that support e-commerce retailers, traditional retailers, suppliers and wholesalers. The majority of the assets are located in Dallas, Chicago, Columbus, Memphis and Atlanta. “ADIA and PSP Investments are two of the most highly regarded international real estate investors,” says Ward Fitzgerald, CEO of Exeter, “and we are thrilled to work with our new partners in the continued successful management of these properties as well as in other opportunities in the United States and abroad.” “We have great confidence in the growth potential of the U.S. industrial sector, particularly in high-quality properties that meet the evolving logistical needs of traditional and omnichannel businesses,” says Tom Arnold, head of Americas Real Estate at ADIA. “The Exeter …

LEAWOOD, KAN. — AMC Entertainment Holdings Inc. (NYSE: AMC), a movie theater chain based in Leawood, has completed its acquisition of Starplex Cinemas for approximately $175 million. Starplex owns 33 theaters spanning 346 screens in 12 states, primarily in small and mid-size markets. “We are very pleased to welcome the Starplex Cinemas theaters into the AMC family, as we expand our guest experience strategy into new markets,” says Craig Ramsey, interim CEO of AMC. Included among the theater circuit are 90 recliner-reseated screens, with AMC planning to convert an additional 80 screens to recliner seating over the next several years. Per the Department of Justice’s recommendation, AMC will divest two Starplex theaters as part of the transaction — Berlin 12 in Berlin, Conn., and East Windsor Town Center Plaza 10 in East Windsor, N.J. “This transaction adds a number of complementary non-urban and suburban markets to our portfolio, allowing us to serve a wider spectrum of guests while broadening our movie going appeal,” says Ramsey. “We believe that through this transaction, we’ve created value for guests and shareholders through the delivery of innovative new amenities, which is expected to deliver incremental revenue, earnings and operating cash flow and to position …