JP Morgan Investment Management acquired 95% of the interest in the building, with Vornado Realty Trust retaining the 5% that it had owned when KanAm and SITQ acquired the building in 2001, according to Steve McCarthy, managing director of WestWind Capital Partners, exclusive advisor to KanAm in the US. Eastdil represented the seller.
McCarthy would not discuss price points. However, according to local comps, the acquisition price of $290 million refers to the full sale of the building--not just the 95% interest that traded to JP Morgan. In 2001, the full purchase price of the building when SITQ and KanAm acquired it was recorded as $165 million.
The tenants in 1501 K St. include Paine Webber, Sidley Austin and Tribune & Co. The building was constructed in 1924 and completely renovated in 2001 when the entire building was demolished, Tonya Ginter, director of research at GVA Advantis, reports, except for the facade.
Ginter tells GlobeSt.com that she believes this is the biggest sale in the District this year, when evaluating transactions on a sf basis. "It is a fitting way to close out the year," she says, "as investment sales in the District have been characterized by ever rising prices on a sf basis."
On average class A space throughout the city has been trading at $465 per sf. However several sales, especially in the East End, have easily topped that. In November, German-based fund Blue Capital Investments sold 799 Ninth St. for $127.5 million, or $634 per sf, to a client of AEW.
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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.
