Douglas Development Buys Historic East End Office

WASHINGTON, DC-Douglas Development has acquired a 35,000-sf East End office building from Verizon for $12.5 million. Paying about $357 per sf, with most buildings in the area scoring $650 per sf, the buyer has scored in a tight market. However the building is more than 100 years old and completely vacant now that Verizon has vacated the premise.

Nonetheless, the tight vacancy rates in this submarket, the still frantic sales activity in most of the District, lack of developable land in the nearby CBD and affection many tenants have for old DC buildings all point to a shrewd investment on Douglas’ part. “Buildings like this, in fact, are in short supply in the DC market,” says CB Richard Ellis’ Bill Prutting Sr., who represented both parties along with Mike Williams in the transaction.

The six-story building, located at 722 12th St., was built in 1903 and designated as a DC historical landmark property in 1985, according to CBRE. It has been placed on the National Register of Historic Places. In 1989 it underwent a major renovation.