CommonWealth REIT sells 1.3M sq. ft. for $167M

CommonWealth REIT announced its plans to sell 13 suburban commercial properties for $167 million. The sales will most likely be finalized before the beginning of 2012. Upon the sales' completion, CWR projects it will earn a profit of approximately $11 million.

The 13 properties have a total of 1.3 million square feet and are 95 percent leased.

CWR stated it has a long-term plan to sell off its current suburban properties and invest its capital into Class A commercial real estate in business districts.

Senior Housing Properties Trust will purchase the 13 properties. Both SNH and CWR are managed by Reit Management & Research LLC and share common trustees. Due to the relationship between the three companies, a third-party appraiser established the sales prices for the 13 properties.

SNH agreed to the purchase, but has the right to withdraw before finalizing the transaction.

CWR owns commercial real estate throughout the United States and elsewhere. Among those holdings, it owns approximately 17 million square feet of leased industrial space in Oahu, Hawaii and has properties in Australia.