Both Shorenstein and Atlanta-based WestWind Capital Partners,which serves as KanAm's US advisor, declined to comment on thetransaction.

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Franklin Tower is 227,809-sf, class A building, which is 98.5%leased. The 12-story building, which includes underground parking,was constructed in 1991 and renovated in 2005.

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At over $650 per sf, this trade is among the highest in theDistrict's East End, according to Tonya Ginter, director ofresearch for GVA Advantis. Other large sales include the InvestmentBuilding and 799 Ninth St.

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In December the Investment Building, a class A property locatedat 1501 K St., traded for $290 million or $782 per sf. KanAm Groupalso sold this property. The sale of 799 Ninth St. for $127.5million, or $634 per sf, took place in November.

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Prices have become so high for DC properties, according toGinter, that many owners are finding that they can now pay to addfloors to their buildings, leasing the additional space and thenselling the renovated buildings for a significant profit. This hasbeen true especially in the central business district, which doesnot have much developable land available and is finding it hard tocompete with East End properties.

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"Though the cost of adding new floors can be pricey, thebenefits can outweigh the risks, especially when sales prices arecontinuing to increase," Ginter says.

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Shorenstein Properties already owns four buildings in theDistrict: Hamilton Square, a 237,000-sf building located on 60014th St.; 1111 Penn Ave., a 331,000-sf property; 1875 K St., whichis 173,500 sf; and 1625 K St., a 108,000-sf building.

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