By Allen Kenney

In a move designed to boost its presence in Washington, Liberty Property Trust (NYSE: LRY) announced an agreement in July to purchase Republic Property Trust (NYSE: RPB) for a total of roughly $900 million.

The deal would garner Malvern, Penn.,-based Liberty 2.6 million square feet of leased office property in the Washington area, including 13 properties consisting of 24 office buildings. The merger also would include Republic's 176,000 square foot downtown redevelopment project.

Under the terms of the agreement, announced July 23, Republic shareholders would receive $14.70 per fully diluted share and unit in cash, a 28 percent premium over its day-earlier closing price. Liberty would also assume Republic's approximately $415 million in debt.

Liberty Chairman and Chief Executive Officer William P. Hankowsky called the purchase a "natural complement to our Baltimore/Washington corridor presence." Liberty already owns a bundle of nearly 50 office properties primarily concentrated in the Maryland suburban region between Baltimore and the nation's capital.

"This transaction represents a major milestone for Liberty as we will acquire a very high quality portfolio in one of the premier US office markets," said Hankowsky. "We have been strategically focused on entering this market for some time and are pleased to be able create such a critical mass of office assets in the DC market through a single transaction."

The deal now awaits approval from Republic's shareholders and is expected to close in the fourth quarter of 2007.

Trading Spaces Making a name for itself in the public commercial property markets, CapLease Funding, Inc. (NYSE: LSE) acquired 18 properties of retail and office space from EntreCap Financial Corporation for $364 million, pushing its asset value to more than $2 billion. “We make investments in a conservative asset class,” says CEO Paul McDowell of his April 2007 acquisition. “Typically, single tenant commercial properties under long-term leases.”

Women in NAREIT Merrie Frankel, vice president and senior credit officer of real estate at Moody’s Investors Service, addressed the Women in NAREIT reception at NAREIT’s 2007 REITWeek® Investor Forum. Art Coppola, NAREIT chair, and president and CEO of The Macerich Company (NYSE: MAC) also welcomed the attendees. Over 2,000 participants attended the 2007 REITWeek® forum with 150 REIT management teams in attendance as well as banks, sell-side analysts, rating agencies and financial media.