Tim Callahan, Trizec's president and chief executive officer, says the acquisition illustrates the company's commitment to strategically reposition and enhance its office portfolio in a select number of key submarkets. "With comparable market net rental rates currently averaging 80% above in-place rents, this high-quality property provides solid cash flows with long-term upside potential."

Completed in 1992, the 12-story building is located in the East End submarket of Washington's central core. The property features floor plates of 31,000 sf as well as a 276 space, four-level underground parking garage. The property is currently fully occupied, with the entire 385,000-sf office portion leased to the Pension Benefit Guaranty Corp. through the end of 2018.

Trizec may use 1031 like-kind exchanges between the 1200 K St., NW acquisition and certain property dispositions, resulting in a deferral of the company's taxable gains on the sale of assets. Trizec has a 4.8-million-sf portfolio in the DC metro area features as well as interest in the Waterview mixed-use development in Rosslyn, VA.