That would put the purchase price at something close to $136 million. The seller is the Dutch pension fund PVF, which is selling the 340,000-sf building as part of a long-term strategy for its US portfolio. The building, with 336,000-sf of rentable space, is fully leased to a mix of professional firms and corporations.
"The dollar is very strong vis-à-vis the Euro. And it's a good time to sell the asset, if you're looking to sell in a given time frame," the official says.
Built in 1996 by Kaempfer, the developer keeps its offices there and has continued to manage and lease the property. Aegis Realty Consultants is the asset manager. Cesar Pelli Associates designed the building.
Kaempfer was also involved with the last building to sell in the range of $400 per sf, the Warner Theatre building at 1299 Pennsylvania Ave. NW. Also built, managed and leased by Kaempfer, the 13-story, 597,691-sf building was sold in the spring to a partnership that included Kaempfer and an overseas group, for an estimated $223 million. That would be $417 per sf, if the theater portion were excluded, or about $373 per sf if not.
The latest deal highlights the strong interest that investors still have in Washington properties, says Mary Petersen, who heads research at Cassidy & Pinkard. There were 20 buildings larger than 50,000 sf sold in Washington this year, totaling $919 million. Overseas investors and domestic pension funds account for most of the purchases, she says.
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