Investment Sales Prices Per SF Remain Constant

WASHINGTON, DC-Investment sales in the District for Q4 were markedly lower than Q3 and certainly Q2, according to Tonya Ginter, director of research and marketing for GVA Advantis. In the process of finalizing year-end numbers, she says that one constant has already emerged: volume of sales is significantly down, while price per sf of those buildings that have traded remains constant. Noticeably missing, though, are the extraordinarily high price per sf trades that characterized 2006 and the beginning of 2007–that is, anything more than $600 per sf.

One recently completed transaction, though, has been the exception for this quarter, she noted. Located at 777 6th St. NW, an 11-story 191,000-sf building sold for $123 million or $644 per sf. “I haven’t seen prices at that level since before the credit crunch,” Ginter tells GlobeSt.com. The seller and developer was Trammell Crow Co.; the buyer is the American Association for Justice. Trammell Crow did not return calls for comment. The building did have the advantage of being partially preleased, according to Ginter. Cooley Godward Kronish LLP signed on to occupy 54,000 sf about a year ago when the building was still under development. The new owner will be occupying a good portion of the space in its new acquisition as well. Ginter says asking rates for class A space in the East End is about $48 per sf.