WASHINGTON, DC—Fresh on the heels of its acquisition of the Starbucks-anchored retail building at Dupont Circle, Harbor Group International has made another buy in the city: a 31,340 square foot office located at 450 H St., for $13.52 million. The seller is an affiliate of Brookfield Properties.
The property, which sits at the intersection of the East End and Capitol Hill near Chinatown, is fully occupied by The District of Columbia’s Department of Youth Rehabilitation Services. As a condition of the department’s long-term lease renewal, the property is undergoing a complete renovation. HGI plans invest $3.48 million to retrofit the tenant space and refurbish the lobby and elevator cabs.
This trade and the Starbucks deal are admittedly small, but they fit perfectly in the company’s current platform as well as its goals to expand its footprint in the city, Chairman and CEO Jordan E. Slone tells GlobeSt.com. “We have been looking to increase our presence in the DC market and these properties fit in our portfolio nicely.”
HGI has about a $4 billion portfolio and this year the company plans to invest $1 billion in total dollars to expand it. It plans to focus primarily in New York City, Washington DC, Chicago and south Florida for its office investments, he says.
And indeed, the company also just acquired the 358,637-square foot 55 Broadway in New York City from an affiliate of Broad Street Development for $157 million. “I would say 55 Broadway is more typical in size for what we do and what we are looking for, but we like these smaller deals a lot too,” Slone says.