Columbia has worked with SSPF in the past, investing in four office properties encompassing 800,000 sf, according to the release. It has invested in a fifth office asset through a joint venture with another JPMorgan Asset Management-Real Estate fund.

This deal illustrates a theory many hold that public real estate companies are undervalued in the capital markets. These valuations have been viewed as a prime opportunity for private equity and have fueled a rash of public-to-private transactions over the last two years. "It is unfortunate that small public companies aren't viewed in the public markets as a great alternative today, because of Sarbanes-Oxley and various other new regulations," Decker says. "Oliver [Carr], John [Schissel] and the rest of Columbia's team are great operators that understand this market. JPMorgan Asset Management recognized that. The rest of the market didn't."It is unclear how, or if, this acquisition will change Columbia's investment strategy. Columbia and JPMorgan Asset Management were unable to return calls in time for publication. In a statement, Nathaniel Daly, vice president at JPMorgan Asset Management, said the company would work with Columbia's senior management team to pursue future value-added transactions in the metro D.C. region. Decker speculates that the acquisition will allow Columbia, which currently owns some 3 million sf of office properties in the metro area, to pursue more value-add investments than it has in the past.

Wachovia Securities was Columbia's financial advisor, and Hunton & Williams LLP its company counsel. Goldman Sachs was financial advisor to JPMorgan. Its legal counsel was Stroock & Stroock & Lavan LLP.