Capital Gateway Complex Sells for $180M

NORTH BETHESDA, MD-Capital Gateway II and IV, twin class A office buildings totaling 574,000 sf, have found a new owner courtesy of a recent $180 million transaction. TIAA-CREF acquired the dual-structure complex from Hines Corporate Properties, which had purchased the two buildings back in 2001 for $120 million. The deal marks the largest office transaction in Suburban Maryland in the last few years.

Carrying the respective addresses of 6700 and 6710 Rockledge Dr., Capital Gateway II and IV boasts a coveted location right off Interstate 270 in the Rock Spring Park office development. Completed in 1993 by IBM and Park Tower Realty as a home for IBM, the two-building property has a current assessed value of approximately $124 million.

Today, IBM continues to call Capital Gateway IV home, occupying the entire structure under a lease that is scheduled to expire at the end of 2011. The tenant roster at Capital Gateway II is much longer by comparison, and includes, to name a few, the National Institutes of Health, which occupies about 120,000 sf, IMAKE Software and Services Inc. and real estate services firm Transwestern Commercial Services.