WASHINGTON, DC—A source has told GlobeSt.com that 1615 L St., NW, is in the process of being sold. Spitzer Enterprises acquired the 417,273-square foot building in March of 2009 for $180 million, or $430 per square foot.
The source tells us that the 13-story building is trading for $230 million or $551 per square foot and that the buyer is Carr Properties. A request for comment to Carr Properties was not returned in time for publication. GlobeSt.com was unable to contact Spitzer Enterprises.
1615 L St. was scooped up at a time when precious few investment trades were happening. Bernard Spitzer, who has since passed away, paid for the building with cash, assuming a pre-existing $138 million mortgage.
Later that year, Spitzer Enterprises secured a $134.3 million mortgage to refinance it—specifically, a 10-year CMBS loan featuring a fixed-rate of 4.61% and interest-only payments for the full term. For that time period, these were rare terms.
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Separately, but relatively close geographically, the 12-story Franklin Tower office building at 1401 Eye St., NW, has traded for $183.9 million, according to public records. Washington Business Journal is reporting that the buyer is BlackRock Realty Advisers.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
