Monday Properties and Apollo Real Estate did not announce the seller, but according to the most recent comp available for the property, the owner had been CDC Mortgage Capital, which acquired the class C building from Laszlo N. Tauber & Associates in February 2004 for $90.5 million.
The building, located at 2100 Second St. SW, has served as the headquarters for the US Coast Guard since 1973, when the building was constructed. The Coast Guard's lease is set to expire in 2008.
Monday Properties is the managing member that will handle the property and partnership operations. It is the firm's first investment in the DC area, according to the release about the deal.
Stephen Conley and Andrew Weir at Holliday Fenoglio Fowler LP represented the seller.
Transpoint Building, which is next to Fort Lesley J. McNair, is located in the heart of the city's Baseball district, which is currently enjoying a renaissance of development. A few blocks to the east lies the $600 million Washington Nationals Baseball Stadium, now under construction. The building will also benefit from several plans underway by the Anacostia Waterfront Initiative, which will revitalize some 900 acres along the river. Private investors are now flocking to the area as a result.
The buyers cited the property's location as a key attribute. Anthony Westreich, president of Monday Properties, says in a statement that they are "very enthusiastic about the changing dynamics of the Southwest Waterfront neighborhood and the opportunities that are beginning to develop in the area." Steven Wolf, the Apollo partner who oversees the firm's Value Enhancement Funds, says, "We see strong growth potential for both the property and the location. The Southwest Waterfront area is undergoing extensive and rapid change, with a variety of projects planned for redevelopment."
That development may be a reason behind the companies' decision to buy what is likely to be an empty building, Tonya Ginter, research director with GVA Advantis tells GlobeSt.com. "We are seeing a lot of investors purchasing vacant buildings and those investors are becoming asset managers as they have to lease up the buildings."These firms are willing to take the risk, she says, because they believe they can capitalize on the activity underway in this submarket now.
Monday Properties could not be reached for comment.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
