"We view this as an excellent long-term investment for the Medical Fund," LaSalle's Medical Office Fund president Steve Bolen tells GlobeSt.com. Located just blocks from George Washington University Hospital, the eight-story building features ground-level retail space and an underground parking garage to accommodate more than 250 vehicles. In addition to being in good condition, the building is mostly occupied with tenants such as The Alliance for Aging Research, The Associated Press, LabCorp., Washington Radiology Associates, and a bevy of physicians and healthcare lobbyists.

The previous owner renewed many tenant contacts earlier this year, so the building will not experience any major lease turnovers until 2007. Office space in 2021 K goes for as much as $34.50 per-sf. Citing the property's attributes in a written statement, Bolen adds that it "is well-leased, convenient for both physicians and patients, and is well-located in a strong sub-market."

LaSalle Investment Management is part of the Jones Lang LaSalle group of companies, which will handle the leasing and management of the building. The Medical Office Fund--created a couple of year ago specifically for acquiring and developing strategically chosen medical office properties--secured a $50 million revolving credit facility from MONY Realty Capital in April. Part of the funds was applied toward the acquisition of Richmond, VA's Hanover Medical Office Building I.