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."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- 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
*May exclude premium content© 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.
