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Japan's Unizo Holdings May Be Acquiring Longfellow Building

WASHINGTON, DC—Owner Mack-Cali put it up for sale last year signaling it was exiting the DC market.

By Erika Morphy | erikamorphy | | Updated on February 26, 2016
1201 Connecticut Ave., NW 1201 Connecticut Ave., NW
WASHINGTON, DC—A source tells GlobeSt.com that Mack-Cali has found a buyer for the Longfellow Building, the 173,688-square foot office building at 1201 Connecticut Ave., NW, which it put on the market last November along with 1400 L St. NW. The purported buyer is Unizo Holdings, a property investor based in Tokyo, Japan. The building, we have been told, is under contract for $95 million, or $547 per square foot. Mack-Cali’s rational for exiting the Washington DC market is understandable. The REIT is still focused on righting its ship, concentrating on its New Jersey holdings and Roseland Residential Trust, a subsidiary it formed on December 31, 2015. In its quarterly earnings for the fourth quarter, executives freely said the REIT was still over-leveraged and it would be focusing on further non-core sales. As for Unizo, it is an interesting candidate as a DC landlord. According to its financial statement, its operating  income  increased 15% during the first half of 2015 compared to the same period the previous year. “This was the result of newly acquired domestic and overseas properties contributions  to  revenue…” the filing said. One recent investment it made, which closed in October 2015, was in New York City: 370 Lexington Avenue, which traded for $247 million. Sherwood Equities and JPMorgan Chase had put the 27-story, 311,000-square-foot tower on the market hoping it would sell for $300 million, according to published news reports at the time.

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