WashREIT has agreed to sell a 2.3 million-square-foot office portfolio to a Brookfield Asset Management private real estate fund for an aggregate purchase price of $766 million.

Located in the Washington, D.C. metro area, the portfolio consists of 12 properties. Six properties are located in Northern Virginia and six are located in Washington D.C. As of May 31, 2021, the portfolio was 83% occupied.

WashREIT plans to use the net proceeds from this office portfolio sale and future retail sales to fund the expansion of its multifamily platform through acquisitions in Southeastern markets and to reduce its leverage by repaying outstanding debt.

“We are announcing the most significant milestone to date in our transformation into a multifamily REIT,” said Paul McDermott, CEO at WashREIT. “This transaction, along with sourcing multifamily expansion opportunities and our retail sales process, signals our belief that the multifamily asset class is the best vehicle to harness long-term growth for our investors.”