WashREIT is shifting its portfolio away from retail with deals to sell eight shopping centers in the Mid-Atlantic.

The D.C.-based REIT announced Wednesday it has entered into two agreements to sell over 1.6M SF of retail assets from Hagerstown, Maryland, to Alexandria, Virginia.

The first deal would generate $485M with the sale of 800K SF of retail space across five properties: Gateway Overlook in Columbia, Wheaton Park and Olney Village Center in Montgomery County, and Bradlee Shopping Center and Shoppes of Foxchase in Alexandria.

The second deal, for which WashREIT did not disclose the price, would dispose of three power center properties, two in Frederick and one in Hagerstown, totaling 850K SF.

The two sales are expected to close in late July. WashREIT said the estimated cap rate for the two retail sales is about 6.2%.

WashREIT is using the proceeds from the sales to fund the acquisition of multifamily properties. It expects to close this week on the acquisition of two multifamily assets for $82M, the final piece of a seven-property portfolio deal it announced in April. It also announced Wednesday it is under contract to acquire a value-add multifamily property for $70M and expects the deal to close in late July, but it did not disclose the name of the property.

The deals represent a major shift in the composition of WashREIT's portfolio. Upon closing, they would reduce the share of retail to roughly 6% of its net operating income, and grow multifamily to 45% of NOI.