"The acquisition of these buildings, at an approximately 15% discount to replacement cost, is consistent with our goal to acquire high-quality properties in the Washington, DC metro area," CarrAmerica chief investment officer Karen Dorigan says. The buildings at 11, 44, 66 and 99 Canal Center Plaza were built in the 1980s and offer a total of approximately 484,000-sf of class A office space. At two-decades-old, the Fairfax Street structure, also known as TransPotomac V, has about 103,000-sf and carries a current appraisal value of $17 million. Beacon acquired the five-building portfolio last year from RREEF Funds of San Francisco and Equity Office Properties of Chicago in a $119-million deal.

Today the portfolio is about 90% leased, boasting a strong tenant base that includes occupants such as Close Up Publishing, EEI Communications, and the National District Attorneys Association. Space rents for approximately $31-per-sf. Leases for the two largest tenants run to 2010, and there is no significant rollover among tenants until 2005. During the company's earnings conference call earlier this month, Dorigan describes the acquisition as a low risk investment for quality asset. "We have been overweighing in markets where we feel that the long-term growth in holding assets will create great returns," she adds. "We thought the market would be moving towards lower asset prices. We think we can grow by adding little G&A. This is a tactical adjustment to a short-term market situation."