Capitol Hill Property Puts a $100M Dent in New Owner's Pocket

WASHINGTON, DC-The 303,000-sf office building at 800 North Capitol St. has found itself a new home in the property portfolio of Galaxy Investments Inc. Seller NGP Holdings III LLC disposed of the property with the assistance of real estate services firm Cassidy & Pinkard. Details of the transaction have not been disclosed, however the property carries a 2004 assessed value of $99.1 million; a figure that gives a low-ball indication of what the price tag on the property might have been. Part of the deal includes a 99-year ground lease held by Gonzaga College High School that expires at the end of May 2089.

Built in 1991, 800 North Capitol is a class A offering with 270,600 sf of office space spread out among its 10 above-ground floors, 7,900 sf of ground-level retail space, and 24,500 sf of below-grade space for offices, a conference room and a fitness center. There are also three subterranean levels of parking space to accommodate approximately 230 vehicles. The property has always been a hot ticket for investors. In 1999, the building commanded nearly $74 million on the market, making it the fifth largest sale of the year.