Brandywine Buys Out Partner at University City Property

Brandywine Realty Trust is doubling down on its property in University City.

The Philadelphia-based REIT paid $70.5 million to buy out its joint venture partner’s stake in 3025 John F. Kennedy Boulevard, giving it full ownership of the newly completed 28-story mixed-use tower, the Philadelphia Business Journal reported. The deal also includes Brandywine assuming its share of the building’s debt.

The 570,000-square-foot property — part of the $3.5 billion Schuylkill Yards master plan with Drexel University — cost $325 million to develop and combines 326 apartments with roughly 200,000 square feet of office and lab space.

Brandywine previously held a 66 percent stake, and an unnamed global institutional investor owned the rest.

At the residential portion, co-developed with New York’s Gotham Organization, 99 percent of units are leased and renewal rents are climbing at double-digit rates this year. The office portion is 92 percent leased on a committed basis, anchored by law firm Goodwin Procter and life sciences company Future Standard, which will take occupancy in early 2026.

Chief Executive Officer Jerry Sweeney told investors on the firm’s quarterly earnings call that the move clears the way for Brandywine to refinance the construction loan, which carries an 8 percent interest rate. He said refinancing could save the firm about $4 million annually when the debt matures in 2026.

“With the property now wholly owned, we have the flexibility to refinance the above market debt with lower price, unsecured, secured or agency debt,” CFO Tom Wirth said on the call. “And we can also assess the opportunity to find a common equity partner and potentially reduce our equity stake.”

The buyout underscores Brandywine’s continued bet on University City, even as office leasing remains choppy citywide. The real estate investment trust is still seeking tenants for much of its nearby 3151 Market Street building, a 472,000-square-foot life sciences project, but a food hall at the historic Bulletin Building is slated to open on Halloween.

— Holden Walter-Warner