Dek Potts and Jim Meisel, from GVA Advantis' local office, were the sole brokers.
The transaction's $451-per-sf acquisition price is typical for investment sales in the city, which have been averaging around $465 per sf for class A office space, although building trades have reached far higher price points than the mid-$400s as evident from last week's sale of 1501 K St. which traded for $782 per sf, as reported by GlobeSt.com.
This particular asset sale varies slightly from what has been the norm lately because it is located in the central business district.. "In the third quarter it seems as though most of the investment sales and big leases occurred in the East End," Tonya Ginter, director of research with GVA Advantis, tells GlobeSt.com, attributing the flurry of activity to a higher level of construction and the decision by some law firms to move into the area. Price wise, deals in the CBD and East End have been the same, she says.
Sales, however, have been brisk in DC's CBD as well. In September, for instance, an affiliate of Rreef America acquired 1800 K St., a 275,000-sf office building, for $98 million from New York City-based Paramount Group Inc.
Zuckerman's new holding on 1920 L St. is completely occupied, leaving it little room for short-term leasing strategies. However, as in the rest of the city, this part of town has been experiencing significant price appreciation. Paramount, for example, bought 1800 K St. in March 2004 for $69 million and upgraded it before its subsequent sale.
Continue Reading for Free
Register and gain access to:
- 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
© 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.
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.
