Earlier this year Penzance announced that George Washington University signed a full floor lease at the office building, bringing the Watergate to more than 90% leased.

Penzance began marketing the office component of the Watergate several months ago, tapping Eastdil Secured to handle the sale.

In June of this year, Bloomberg reported that it had seen financing documents showing that the office building was trading to New York City's Steinbridge Group and Dallas-based Lincoln Property Co.

Penzance Marketing Watergate's Retail Assets Too

Separately, Penzance and Greenfield Partners placed the retail and parking assets on the market with Institutional Property Advisors, a division of Marcus & Millichap, just a few weeks ago. The offering includes 57,494 square feet of retail space that is currently 85% leased, and a multi-story parking garage. These parcels have never been listed independently. In that brief period of time, IPA has executed more than 100 confidentiality agreements over the listing, Dean Zang, IPA senior director, tells GlobeSt.com.

A CVS/pharmacy occupies 22% of the complex's total leasable retail area. Approximately 33% of the offering's income is derived from the Watergate complex's sole parking facility, according to Zang, who along with Nathan Pealer and Joshua Ein are representing the seller.

Requests for comment were sent to Penzance and Rockwood Capital but they have not been immediately returned. We will update this story when/if we hear back from them.

WASHINGTON, DC–A source has told GlobeSt.com that the Watergate, perhaps the most iconic office building in a city filled with them, is trading for $80 million, or $390 per square foot, to New York City-based Rockwood Capital. Penzance is the seller of the 205,000 square foot building located at 2600 Virginia Ave.

The source says the deal is pending but not closed.

Penzance acquired the building from mezzanine lender Capri Capital in 2011 for $76 million — coincidentally shortly before the Thanksgiving holiday that year. The building had been surrendered by Los Angeles investor BentleyForbes, which paid $84.5 million for it in 2005.

The Watergate acquisition was a value-add play for the company — the building was only 45% leased at the time. It underwent an multi-million dollar repositioning and tenants began rethinking the building's possibilities. In 2013, for instance, the National Trust for Historic Preservation decided to relocate its headquarters at the Watergate after selling its Dupont Circle headquarters to the American Enterprise Institute for $36.5 million.

Earlier this year Penzance announced that George Washington University signed a full floor lease at the office building, bringing the Watergate to more than 90% leased.

Penzance began marketing the office component of the Watergate several months ago, tapping Eastdil Secured to handle the sale.

In June of this year, Bloomberg reported that it had seen financing documents showing that the office building was trading to New York City's Steinbridge Group and Dallas-based Lincoln Property Co.

Penzance Marketing Watergate's Retail Assets Too

Separately, Penzance and Greenfield Partners placed the retail and parking assets on the market with Institutional Property Advisors, a division of Marcus & Millichap, just a few weeks ago. The offering includes 57,494 square feet of retail space that is currently 85% leased, and a multi-story parking garage. These parcels have never been listed independently. In that brief period of time, IPA has executed more than 100 confidentiality agreements over the listing, Dean Zang, IPA senior director, tells GlobeSt.com.

A CVS/pharmacy occupies 22% of the complex's total leasable retail area. Approximately 33% of the offering's income is derived from the Watergate complex's sole parking facility, according to Zang, who along with Nathan Pealer and Joshua Ein are representing the seller.

Requests for comment were sent to Penzance and Rockwood Capital but they have not been immediately returned. We will update this story when/if we hear back from them.