Capitol Place III was developed two decades ago and is one of three office buildings that comprise Capitol Place, a one-million-sf mixed-use property that also features the 264-room Washington Court Hotel. The site is located just a few blocks from the US Capitol and is close to Union Station.

Lease commitments by a varied list of tenants have left the building fully occupied. Among the businesses calling Capitol Place III home are Roll Call newspaper, anti-hunger organization Bread for the World and the National Business Group on Health. Capitol Place's largest leaseholder is the Association of American Railroads which, under a lease that expires December 2010, has laid claim to 135,200 sf. Approximately 75% of that space is presently subleased to other businesses.

For San Mateo, CA-based Glenborough, the acquisition fits well with the REIT's current strategy. "We continue to build our presence in our top market, Washington, DC, which is projected to increase to 27% of our portfolio's net operating income," says company president and CEO Andrew Batinovich. In February, Glenborough purchased a similar property--the fully leased, 234,500-sf Metro Place II in the Washington, DC suburb of Merrifield, VA--for nearly $72 million.