SOURCE: Brandywine Realty Trust

November 17, 2008 15:18 ET

Brandywine Realty Trust Closes Rehabilitation Tax Credit Transaction With US Bancorp

RADNOR, PA--(Marketwire - November 17, 2008) - Brandywine Realty Trust (NYSE: BDN), a real estate investment trust focused on the ownership, management and development of Class A, suburban and urban office properties in the mid-Atlantic region and other selected markets throughout the United States, announced today that it has closed a transaction with US Bancorp (NYSE: USB) related to the historic rehabilitation of the 30th Street Post Office in Philadelphia, Pennsylvania, an 862,692 square foot office building which is 100% pre-leased to the Internal Revenue Service. US Bancorp has agreed to contribute approximately $67.9 million of project costs and has advanced $10.2 million of that contemporaneously with this closing. The remaining funds will be advanced in 2009 and 2010 subject to Brandywine's achievement of certain construction milestones and its compliance with the federal rehabilitation regulations. In return for the investment, US Bancorp will, upon completion of the project in 2010, receive substantially all of the rehabilitation credits available under section 47 of the Internal Revenue Code.

Brandywine was advised on this transaction by the accounting firm of Reznick Group, P.C. and the law firm of DLA Piper LLC. US Bancorp was advised by the law firm of Nixon Peabody LLP.

About US Bancorp

US Bancorp is the holding company of US Bank N.A, the 6th largest commercial bank in the country with assets of $260 billion. US Bank operates 2,498 banking offices and 4,837 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment products to consumers, businesses and institutions. For more information, visit US Bank's website at

About Brandywine Realty Trust

Brandywine Realty Trust is one of the largest, publicly-traded, full-service real estate investment trusts in the United States. Brandywine manages a primarily Class A, suburban and urban office portfolio aggregating approximately 39.8 million square feet, including 26.5 million square feet which it owns on a consolidated basis. For more information, visit Brandywine's website at

Forward-Looking Statements

Certain statements in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Brandywine's and its affiliates' actual results, performance, achievements or transactions to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors relate to, among others: Brandywine's ability to lease vacant space and to renew or relet space under expiring leases at expected levels; competition with other real estate companies for tenants; the potential loss or bankruptcy of major tenants; interest rate levels; the availability of debt, equity or other financing; competition for real estate acquisitions; risks of acquisitions, dispositions and developments, including the cost of construction delays and cost overruns; unanticipated operating and capital costs; obtaining adequate insurance, including coverage for terrorist acts; dependence upon certain geographic markets; and general and local economic and real estate conditions, including the extent and duration of adverse changes that affect the industries in which Brandywine's tenants operate. Additional information regarding the factors which could impact Brandywine and the forward-looking statements contained herein are included in Brandywine's filings with the Securities and Exchange Commission, including Form 10-K and Form 10-K/A for the year ended December 31, 2007. Brandywine assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events except as required by law.

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