October 5, 2009 (FinancialWire) — Brandywine Realty Trust (NYSE: BDN) said it has closed the sale of the two properties it owned in Trenton, New Jersey for $85 million. The buyer is an undisclosed, private investment group.

The properties total around 474,000 of net rentable square feet and were 96.5% occupied as of September 30, according to Brandywine.

Under the terms of the sale, $22.5 million of the $85.0 million due at the closing has been deferred by Brandywine as a seven-year, 6% cash-pay / 7.64% accrual second mortgage loan provided to the buyer.

The loan is secured by a second mortgage on the two properties and is subordinate to the $45.5 million first mortgage loan the buyer arranged for the purchase.

Brandywine will recognize a gain on the sale of these properties, the majority of which will be deferred under the installment method of accounting until the repayment of the second mortgage loan.

Upon closing of the sale, Brandywine realized around $62.5 million of cash proceeds before customary pro-rations and transaction costs, and said it will realize around $27.8 million of additional cash proceeds on September 30, 2017 upon repayment of the second mortgage loan inclusive of the estimated accrual.

Under certain circumstances, the loan may be extended for an additional three years.

The company will use initial proceeds of the sale will provide cash balances for general corporate purposes including the repayment of existing indebtedness. An affiliate of Brandywine will manage and lease the two properties for a seven-year period following the closing.

Radnor, Pennsylvania-based Brandywine Realty Trust owns, develops and manages a primarily class A, suburban and urban office portfolio of around 36.1 million square feet, including 25.6 million square feet which it owns on a consolidated basis.

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