Air Rights Center Fetches $147M

BETHESDA, MD-The 712,000 sf Air Rights Center becomes the property of Teachers Insurance Annuity Association affiliate Bethesda ARC LLC in a $147-million deal with owner Lowe Enterprises Investment Management. Lowe disposed of the three-building property on behalf of pension fund client Washington State Investment Board.

The complex, which has undergone two renovations in the last five years, was built over a sixteen-year period, beginning with the construction of the 10-story Air Rights East Tower in 1964. Air Rights West came along in 1972, followed by the north tower in 1980. The last two structures are 13 floors and 12 floors high, respectively. All three buildings offer ground-level retail space and the complex is nearly 100% leased with tenants such as Acacia Mutual Life Insurance, American Capital Access Corp., George Washington University Health Plan, and Mass Mutual of Life Insurance. Leasing rates range from $25 per-sf for existing tenants to $34 per-sf for new occupants.