RADNOR, Pa., June 29 /PRNewswire-FirstCall/ -- Brandywine Realty Trust (NYSE: BDN) announced today that it has completed definitive agreements for $256.5 million of aggregate forward financing commitments on the 30th Street Post Office and Cira South Garage projects. The 30th Street Post Office project in Philadelphia, Pennsylvania is a $260.5 million historic rehabilitation of an 862,692 square foot office building which is 100% pre-leased to the Internal Revenue Service (IRS) for a twenty-year term. The $95.0 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 which will be up to 94% pre-leased to the IRS. As of March 31, 2009, $257.2 million remained to be funded of $355.5 million of aggregate project costs.
In conjunction with the finalization of this previously announced financing, the individual project loans were increased to $209,700,000 from $209,340,000 and to $46,800,000 from $46,735,000 for the Post Office and Garage, respectively. The $256.5 million of aggregate proceeds has been funded by the underlying lenders and has been deposited along with our gross forward commitment fee of approximately $17.7 million into an escrow account to be administered by The Bank of New York Mellon, as trustee. Upon investment of the escrow account in a portfolio of US Treasury securities, the forward commitment fee will be reduced to approximately $16.2 million which will be used together with the interest earned on the escrow account to pay the interest costs of the loans through August 26, 2010, the anticipated completion date of the projects and the date on which the then remaining escrow balance of $256.5 million is expected to be released to us. We plan to use the $256.5 million of aggregate proceeds to reduce borrowings under our credit facility and for general corporate purposes.
The loans bear interest at 5.93% (versus the initial indication of 5.95%) 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.
