WASHINGTON, DC-Washington Harbour, a two-building, mixed-use development on the Potomac River has traded. A partnership between Rockpoint Group and MRP Realty has acquired the property free of debt. HFF’s Stephen Conley, Andrew Weir and Elizabeth Taylor Johnston brokered the transaction. The property has traded for $244 million and mid-6% cap rate based on an 86% occupancy rate, according to a source.
Located at 3000 and 3050 K St., NW in the Georgetown submarket, Washington Harbour includes two towers totaling 532,601 square feet--of that amount, 456,376 square feet is for office use and 76,225 square feet for retail. The development is 86% leased to more than 20 tenants, including Foley & Lardner and Kelley Drye & Warren.
This is MRP’s fourth transaction in the past year. The company snapped up Monument III, a 193,000-square-foot, seven-story building at 12930 WorldGate Dr. in Herndon, VA, for $51 million from General Electric Credit Equities and a 212,000-square-foot office in Clarendon, VA from Multi-Employer Property Trust for $72 million.
Deals are getting scarcer, though, as the market recovers MRP principal Bob Murphy tells GlobeSt.com. “We are at the point where we still see opportunities, but not as many as a year ago.”
He says the company plans to invest “multiple millions” in the Georgetown development.
Despite the dwindling opportunities, MRP is still on the lookout for acquisitions. The economic case for development, especially for office, is still a few years off. Residential, by contrast, is more likely. MRP is already considering that possibility, Murphy says.
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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.
