"We now own the block from K Street to Eye Street," ICG principal David Stern tells GlobeSt.com. The acquisition, coupled with the company's ownership of the neighboring office building located at 1600 K St., makes it the main landlord/owner on this historic block in the District's CBD.
The parcel it acquired from First Church of Christ has two structures, one of which is a 30,000-sf office building located at 910 16th St., which is 100% occupied. The other is the church itself. The parcel also has a 52-space underground parking garage. As part of the transaction, the First Church will continue to occupy the property.
Stern says the company is currently considering its options now that it has the acquisition--which took a year to close--under its belt. The properties have not undergone a major renovation in several years.
Also, Stern notes, both 1600 K St., which is 95% occupied and 910 16th St., will soon present lease rollover opportunities. He declined to say whether the buildings were leased at market rates.
Other scenarios include a block-wide redevelopment and adding floors to the existing buildings in order to meet the growing demand for space in the land-constrained CBD.
Indeed several buildings on K Street over the last few years have opted to add floors in order to capture additional revenues. Examples include 2121 K St., 2021 K St., 2175 K St. and 1129 20th St., as reported by GlobeSt.com.
Stern declined to discuss these potential options. "This is a historic district and our building is a contributing structure. That means that there are certain restrictions that would apply to any development options we would explore."
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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.
