The sale price was not disclosed. The property at 1801 Pennsylvania Ave., which has a proposed 2006 assessed value of about $60 million, last traded in 2001 in a $44-million deal. Pembroke relied on internal representation, while Winkler was represented by Goldman Sachs.
Developed in 1991, 1801 Pennsylvania occupies a half-acre corner parcel adjacent to the headquarters of the World Bank and just two blocks from the White House. The building features a structured parking facility, as well as 3,600 sf of ground-level retail space that is fully occupied by Corner Bakery. Law firm WilmerHale is the lead office tenant, having signed a 20-year lease in 2003 for 89,000 sf and the option to expand.
The owners of Winkler, family members of the late Mark Winkler, felt that the timing was right to sell off the company's entire portfolio of commercial real estate assets, which also includes multifamily holdings. "Real estate development is a challenging and extremely risky business, especially so for companies that are essentially family-owned businesses providing their own equity," Winkler CEO Randal Kell says. "It is nice to be able to exit the business profitably and at the top of our game."
For Pembroke, which has properties in Boston and San Francisco, as well as international holdings in London and Tokyo, the acquisition of 1801 Pennsylvania marks the firm's debut in the District. "The DC market tends to be countercyclical and is not closely connected to our other properties; this diversification is a benefit to our portfolio," a Pembroke spokesperson tells GlobeSt.com. "The building is a core asset for the firm and will be the foundation for future investment opportunities in Washington, DC." Edward Johnson IV, Pembroke senior vice president, North America, adds in a prepared statement that the company sees "substantial long-term value in the District real estate market and will continue to pursue high-quality investment opportunities in the area."
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