ROCKVILLE, MD-Washington Real Estate Investment Trust has purchased One Central Plaza at 11300 Rockville Pike for $44.4 million. The 12-story building contains 274,000 sf of rentable office space on eight levels and a four-level parking garage.
The building, which is nearly fully leased, was “acquired at a substantial discount to replacement cost” with a purchase price of $162 per sf, according to the company. In a press release, WRIT officials say they expected the purchase to produce a first-year cash-basis return on investment of 10.4%. From 2001 through 2004, expiring leases average only 8% of the building’s square footage per year. However, as the rents in the expiring leases average 24% below current market rents, the cash return on the investment is projected to grow to 11.7% by 2004, the REIT estimates.