According to District real estate records, the property has a proposed 2006 assessed value of $28 million. Gerry Trainor and Donald McCully, senior directors with Transwestern Commercial Services' Mid-Atlantic Investment Services Group, facilitated the transaction on behalf of Penzance.
Developed in 1969, 1129 20th St. is an eight-story structure with a two-level underground parking facility that can accommodate about 160 vehicles. The building was renovated in 1996 and again early last year. At the time of the transaction, 1129 20th St. was 87% occupied with tenants such as the American Legislative Exchange Council, Chicago Title, accounting firm Mitchell & Titus LLP and the National Association of Student Financial Aid Administrators.
For Penzance, the decision to sell the property market was all about timing. "It felt to us that it was a moment in the cycle of the building where we had brought it to a good place and it was ready for prime time," Penzance's Peter N. Greenwald tells GlobeSt.com. "But we are committed to investing in the Washington, DC area. This sale is not a sign, in any way, of a lack of commitment to the market."
With the acquisition complete, JOSS will begin to put its own stamp on the building by instituting an approximately $20-million renovation program that will add two floors with about 30,000 sf to the structure and incorporate other upgrades that will increase the property's status. "With its prime Downtown location, we see significant potential in renovating the building, adding additional rentable area, and capitalizing on its proposed class A status," says Steve Klein, partner of JOSS Realty Partners. "Washington, DC is currently one of the strongest office markets in the country, and we will continue to focus on targeting properties in similar locations, where land is scarce and employment growth is positive."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
