Located at 6196 Oxon Hill Rd., the six-story, class B building is 95% occupied. Gerald Burg, Jim Kornick and Matthew Clinebell in the Washington, DC office of Marcus & Millichap's Healthcare Real Estate Group were the sole brokers in the transaction.
Kornick tells GlobeSt.com that one reason the buyer acquired the building was its belief that the submarket is poised to benefit from the National Harbor Development, a large mixed-use project currently under development by Peterson Cos., and is about a mile away from Riverview.
National Harbor is expected to add more than one million sf of retail, 500,000 sf of class A office space, a 4,000-room hotel at the Gaylord Resort and more than 2,500 residential housing units, Kornick says. "That was a big part of our sales pitch--that the buyers are investing in the future of this development and, subsequently, this area."
Already, Kornick says, Oxon Hill is receiving some benefit from the nearby development. He points to a recent deal--a 178,000-sf, class A office building, called Riverview, that sold in February 2005 for $156 per sf.
In general, medical office buildings in the DC area are trading at a premium because of limited supply due to space and regulatory factors. Last year, as reported in GlobeSt.com, Washington Real Estate Investment Trust, paid a record $429 per sf for three of the four buildings in the Shady Grove/Plumtree medical office portfolio.
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.
