WASHINGTON, DC-San Francisco-based Shorenstein is placing on the market one of the many CBD and East End buildings that it owns here: Hamilton Square, a trophy property located at 600 14th St., NW. John Kevill of Eastdil, who secured the listing with colleague Collins Ege, Kevill tells GlobeSt.com he expects the 248,495-square-foot building to trade in the $200 million range.
That is in line with where core, stabilized assets are trading, he says. “This building checks a lot of boxes for investors that want a unique property that has a compelling story and good location.” Hamilton Square, he points out, is a block away from the White House.
Still, Kevill acknowledges that Washington is subject to another cycle besides the economic one: this year is an election and many real estate-related decisions are being shelved until after November. “To some extent underwriting has become more conservative as we move closer to the election,” he says. “The window into the area’s fundamentals usually becomes a little cloudier in election year.”
For that reason, core assets have become even more hotly sought-after; hence the $200 million asking price. “Even with underwriting becoming more conservative, investors are very competitive for core products because DC has remained one of the most stable office markets in the country and is a preferred location to place capital in the long term.”
Nine-story Hamilton Square is also interesting because it is a byproduct of the complete redevelopment of the flagship Garfinckel’s Department store in 1999. The redeveloped building retains the ceiling heights and fa
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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.
