Corner Office Facility Fetches $38M

WASHINGTON, DC-It is not just the class A office properties that are commanding well over $200 per sf in the District these days. The office structure at 1100 17th St., a 142,000-sf class B property, has just sold in a recent transaction for $37.5 million, or approximately $264 per sf. San Mateo, CA-headquartered Glenborough Realty is the new owner of the four-decade-old building, taking it off the hands of Washington, DC-based Northridge Capital. The property last hit the market two years ago when Northridge acquired it for $30 million. The new price tag puts 1101 17th St. ahead of the crowd. According to Advantis Real Estate Services’ Year-End 2003 Office Report, class B office properties in the District commanded and average $253.74 in the last quarter of the year.Developed in 1963 on a well-traveled corner in the city’s central business district, 1100 17th St. towers 12 stories high and boasts ground-level retail space occupied by a restaurant, a bank and other consumer offerings. The address, directly adjacent to the Renaissance Mayflower Hotel, is just a stone’s throw from the White House, and has a current assessed value of $24.6 million. Office tenants in the building run the gamut from the National Association of County and City Health Officials to the Puerto Rico Federal Affairs Administration, and other trade associations, law offices, and businesses. For its part, Glenborough decided the property was a good fit for its portfolio because it is a “high quality, low risk multi-tenant asset.” Northridge officials were unavailable for comment on the transaction by press time.