428,000-SF Office Tower Sells for $187M

WASHINGTON, DC-Morgan Stanley acquired the 428,000-sf office building at 550 12th St. SW, known as Potomac Center South, for $187 million. The 100% government-occupied office facility–the adjoining sister structure of Potomac Center North at 500 12th St. SW–was sold by developers and owners the JBG Cos. and Prudential Real Estate Investors.

Holliday Fenoglio Fowler was the exclusive representative for the seller and secured a buyer. The transaction included Morgan Stanley’s assumption of an exiting $76-million debt on the property in the form of a loan bearing a 5.82% interest rate. The building and the 1.5-acre it occupies in the District’s Southwest submarket have a current assessed value of nearly $100.2 million, according to DC real estate records.