Bernstein had acquired the property, which occupies land leased from the Washington Gas Co., under a 99-year agreement, early last year in a $92-million transaction. Stephen C. Conley of Holliday Fenoglio Fowler was the sole broker on the deal involving Bernstein and Investcorp and Brickman Associates.

The Maritime Plaza buildings are located within the 12-acre Maritime Plaza master-planned park near the Washington Navy Yard in the District's s southeast neighborhood, which is currently undergoing revitalization including the Washington Nationals baseball stadium. The park will ultimately feature 800,000 sf of office space and a 250-room hotel. Carrying the address of 1201 M St. SE, Maritime I was developed in 2001 and features 200,500 sf of space, while the two-year-old Maritime II at 1220 12th St. SE offers 145,100 sf.

Together the office facilities are home to a host of government contractors and other businesses, and have an average occupancy level near 90%. Lincoln Property Co., which partnered with Washington Gas to develop Maritime I and II, had been handling leasing at the buildings, where space was being marketed for $36.50 per sf to $37.50 per sf. Lincoln will continue in its role under the new ownership, and Brickman Associates will be in charge of management responsibilities.

As for Bernstein's decision to sell the property soon after having purchased it, the company felt that the timing was just right. "Our team made a number of improvements to the property, including leasing, and issues regarding leasing rights and property development rights," Bernstein vice president Gary Griffin tells GlobeSt.com. "With the Southeast region becoming more recognized as an investment area, the property was more desirable for national investors."

Investcorp and Brickman Associates expect the purchase to yield both short-term and long-term rewards. "The Maritime Plaza properties are strategically well-situated, with an excellent tenant base in a rapidly developing section of Washington, DC," Brickman Associates' Bruce Brickman says. "In addition, the office complex offers opportunities for further value enhancement through management and property improvements which we will move forward aggressively to implement."

Instant Insights /

Maritime Plaza Sells for $115M

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