The class B building is currently occupied by tenants thatinclude the General Services Administration, the American Forestryand Paper Association, and Ogilvy Public Relations. Cassidy &Pinkard is the leasing agent for the building. Grubb & Elliswill be the manager.


[IMGCAP(2)]Marc DeLuca, director at ING Clarion, describes thebuilding as a solid investment "in a market with a diverse,resilient economy, relatively low unemployment, and good long termprospects for job growth." Among the submarket's fundamentals thatthe firm likes are new office construction that is expected to peakin 2009; an overall vacancy rate for office space that shouldremain in the 5% range; rent growth that is expected to average3.9% annually through 2012; and the presence of the federalgovernment.


With a 96% occupancy rate, Tonya Ginter, director of Researchand Marketing at GVA Advantis tells that this trade isreflective of a relatively new trend in DC: investment sales ofpredominately leased buildings, compared to the value-add playsmany investors like prior to the credit crunch.


The trade, which closed in time to make it into Q1 calculationsfor the District, starkly illustrates the decline in activity seenhere. According to figures GVA Advantis plans to release in thecoming week, office investment sales in the DC metro area equaledsome $520.8 million--down from Q4 2007's $2 billion sales. At $115million, the ING-Blackstone transaction represented a quarter ofDC's office sales activity, Ginter notes. "Generally sales are slowat the start of the year but that kind of drop is alarming."

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Erika Morphy

Erika Morphy has been writing about commercial real estate at 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.