CarrAmerica Acquires 5-Building Portfolio for $141.5M

ALEXANDRIA, VA-CarrAmerica Realty Corp. has committed to doling out $141.5 million to acquire a five-structure waterfront property portfolio accounting for about 590,000-sf of space. The office portfolio, located in the city’s Old Town area along the Potomac River, consists of four buildings at Canal Center Plaza and the building down the street at 1188 North Fairfax St. As part of the deal, the Washington, DC-headquartered REIT will take on $63.5 million in debt. CarrAmerica expects to close the deal with seller Boston, MA-based Beacon Capital Partners by the end of the third quarter.

“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.