Prudential Real Estate Investors sold the property on behalf of German institutional investors in US Property Fund III. Cassidy & Pinkard represented the seller. Hines represented itself in the transaction.
Hines acquired the property through its US value-add office investment program; it is the program's first DC acquisition. A longstanding investor in the DC market, Hines already owns Columbia Square, Franklin Square, Postal Square, 600 Thirteenth St., 370 L'Enfant Promenade, 1900 K St., 1200 19th St. and 1001 Pennsylvania Ave.
The building was completed in 1969, but has undergone significant renovations over the past 10 years. Tenants include the Urban Institute; the George Washington University; Perkins+Will Inc.; and the Stewart & Stewart Law Office.
One potential avenue Hines might explore to add value to the project is the potential development of an additional 100,000 sf, according Hines Vice President John Harned.
"The purchase of 2100 M St. gives Hines the opportunity to own a superbly located, fully leased building in Washington's CBD," he says in a statement.
Even though DC buildings have been trading at very high levels, Ginter says this particular sale stands out. "The seller got a nice price for a class B building."
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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.
