WASHINGTON, DC-The Canada Pension Plan Investment Board has acquired a 45% equity stake in two office buildings Vornado Realty owns in the District: 1299 Pennsylvania Ave., called the Warner Building, and 1101 17th St., NW. The $91 million CPPIB has sunk into the properties represents its first real estate investment in Washington, DC’s CBD.
CPPIB is assuming 45% of the existing mortgage debt. The two assets have a total implied value of $526 million. CPPIB was unable to return a call to GlobeSt.com in time for publication.
Vornado realized a net gain of approximately $54 million on the sale of the Warner Building to be recognized in the fourth quarter. The gain on 1101 17th will be recognized when Vornado monetizes its investment. Vornado will retain its 55% ownership interest and continue to manage and lease these properties.
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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.
