WASHINGTON, DC-Jamestown Properties has acquired 733 10th St., for $140 million. The news is not a surprise to the local commercial real estate industry: rumors of the contracted sales price have been circulating for weeks.
Based on its location, the sale would have been noted no matter what its history. However this building’s trajectory, from development, to lease up, to its sale, has been closely watched by the industry because the developer, Skanska, broke ground on the class-A, 171,000-square-foot office in 2009, the depth of the recession. What’s more, it developed it on spec.
Skanska’s gambit, though, quickly paid off. Months before the building delivered, the firm secured three major tenants, bringing occupancy to 91%. The sale price is also quite respectable: at roughly $818 per square foot, it's in the same league as a trophy office sale.
The deal also illustrates Jamestown Properties’ growing footprint here. 733 10th St., is its third acquisition in DC, following the Georgetown Renaissance portfolio, which it acquired in fall 2010, and the Madison Hotel and office complex in January 2011.
Jamestown did not return a call to GlobeSt.com in time for publication. However, in past comments, the company has said its goal is to pursue relationships with best-in-class developers. Thus far, its acquisitions in the DC area certainly meet that criteria.
Separately, Jamestown closed on another investment in New York City around the same time this deal finalized. The company has acquired 325 Hudson St. in New York City, a 10-story office, telecom and data center building in the Hudson Square submarket, for $110 million from Bristol Group Inc. and YoungWoo & Associates.
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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.
