WASHINGTON, DC–A fund representing the Al Thani family, the ruling family of Qatar, has acquired the Demonet Building, the 94,893-square foot property at 1155 Connecticut Ave., NW, for $64.3 million, or $677 per square foot. The seller is a JV between RREEF, Textron Financial and Stockbridge.
This building has been a long-term buy-and-hold for the previous owners: the last time it traded was in 1998 for $19.7 million. Tenants in the property include Adecco, MWW Group and the Rock Creek Property Group.
Qatar's Expanding Presence
The trade represents the growing footprint Qatar has in the US CRE markets, including Washington DC.
Qatari Diar, the real estate development entity of the Qatar Investment Authority, is one of the co-developers of CityCenterDC. And Qatar's Al Rayyan Tourism Investment Co., or ARTIC, acquired the St. Regis Washington DC in 2015.
Then there is Jefferson Court, the 322,780-square foot office building located at 1025 Thomas Jefferson Court, which sold for $141.8 million, or $439 per square foot last year to the Qatar Global real estate investment fund, Alduwaliya AM. This particular fund also acquired an office building in Boston, located at 311 Summer St., for $38.5 million last year.
But it is New York City that has been among the very top recipients for Middle Eastern investment, according to the CBRE Group.
Alduwaliya AM, as part of its investment spree in 2016, also picked up a Hilton Homewood Suites in New York City for $168.1 million and the 39th Street Fashion Center in New York City for $123.5 million.
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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.
