Meanwhile, its disposition strategy for 2017 calls for some $70 million to $100 million in sales.

Watergate 600 last traded in November 2003 for $108 million.

Last year Rockwood Capital acquired another office in the Watergate complex for $80 million. The company considered the property as well a value add play.

WASHINGTON, DC–Washington REIT announced it is acquiring 600 New Hampshire Ave., NW, for $135 million in a deal structured as a OP unit transaction. The seller is a local family.

The 309,000-square foot office, also known as Watergate 600, is 97% leased at the moment but it will have a 90,000 square foot vacancy at the end of 2018 when a tenant leaves. It is anchored by The Atlantic Media Co., which occupies 140,000 square feet under a long-term lease through October 2027.

The twelve-story building was renovated in 1997 and is undergoing a second round of renovations that the REIT will complete. It will be a value-add play for the company, similar to what it did at 1775 Eye St., NW, which was acquired and renovated in 2014, according to Washington REIT CEO Paul T. McDermott.

“600 New Hampshire provides Washington REIT with another excellent opportunity to create value for our shareholders through effective repositioning and leasing,” he said in a prepared statement.

Meanwhile, its disposition strategy for 2017 calls for some $70 million to $100 million in sales.

Watergate 600 last traded in November 2003 for $108 million.

Last year Rockwood Capital acquired another office in the Watergate complex for $80 million. The company considered the property as well a value add play.