WASHINGTON, DC–A German fund, Deka Immobilien GmbH, has acquired two connected retail properties at 3241 and 3245 M St., NW, for an undisclosed price from Foxhall Partners, a Washington DC-based private equity firm.
The last time the property traded was in September 2010 for $4.6 million.
JLL's Marc Rampulla and Bill Moylan represented Foxhall Partners in the deal. They declined to provide pricing for the deal.
The property is undergoing a renovation that will bring the total square footage to 10,000 square feet. The Swedish clothing retailer H&M will occupy the entire building under a 15-year lease. It will use the space as a flagship store for its new premium fashion brand “& Other Stories”.
JLL marketed the asset nationally and globally, with most of the interest coming from the latter group, the brokers tell GlobeSt.com.
The top six bidders were international out of the 12 to 13 competitive bids the property received, Moylan says.
Its strong appeal to foreign investors was a combination of a Washington DC location, the high street location and the strong credit tenant, Rampulla says. “Given the long-term lease in place and lack of high street quality retail on the market in the US, we were able to capture strong interest from international capital sources,” he says.
Deka will add the properties to a new open-ended real estate mutual fund it has recently launched.
WASHINGTON, DC–A German fund, Deka Immobilien GmbH, has acquired two connected retail properties at 3241 and 3245 M St., NW, for an undisclosed price from Foxhall Partners, a Washington DC-based private equity firm.
The last time the property traded was in September 2010 for $4.6 million.
JLL's Marc Rampulla and Bill Moylan represented Foxhall Partners in the deal. They declined to provide pricing for the deal.
The property is undergoing a renovation that will bring the total square footage to 10,000 square feet. The Swedish clothing retailer H&M will occupy the entire building under a 15-year lease. It will use the space as a flagship store for its new premium fashion brand “& Other Stories”.
JLL marketed the asset nationally and globally, with most of the interest coming from the latter group, the brokers tell GlobeSt.com.
The top six bidders were international out of the 12 to 13 competitive bids the property received, Moylan says.
Its strong appeal to foreign investors was a combination of a Washington DC location, the high street location and the strong credit tenant, Rampulla says. “Given the long-term lease in place and lack of high street quality retail on the market in the US, we were able to capture strong interest from international capital sources,” he says.
Deka will add the properties to a new open-ended real estate mutual fund it has recently launched.
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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.
