Advantis /GVA's Dek Potts and Jim Meisel served as the sole brokers on the deal. An affiliate of Meritage now possesses a minority stake in the property; Meritage itself will continue its involvement with 475 School St. as asset manager.

Situated in the Capitol Hill area just blocks from the National Mall and the US Capitol, 475 School St. was developed in 1967 and underwent a major renovation in 1996. Although its assessed value at the time of the sale was only $11 million, the property's ability to command $307 per sf can likely be partially attributed to the fact that it is 100% leased to Northrop Grumman through mid-2010.

"We think the conditions in the Washington, DC Metropolitan area will continue to be ideal for real estate investments through 2005," Meisel notes. "With a surplus of equity capital in the market and a measured increase in interest rates, we are bullish for 2005."