The bidding for the building was competitive, Flood tells GlobeSt.com. "We had both domestic and overseas interest." Domestic bidders included pension funds and co-mingled funds, he says. The marketing process lasted about four weeks.
A 124,706-sf building, 1401 K St. is fully occupied, housing among other tenants the popular DC Coast restaurant. In place rents are lower than current market ones, according to Cassidy & Pinkard Colliers.
At $432 per sf, this trade is roughly in line for East End buildings have sold for in recent months. It is clearly, however, a come down from the prices realized 18 months ago. "Investment sales have clearly slowed down in the District," Tonya Ginter, director of Research and Marketing for GVA Advantis, tells GlobeSt.com. In some cases, prices are beginning to decline, but in areas such as the East End and CBD they are holding steady, she reports, pointing to 1331 L St.'s $462.79 per sf sales price as one example.
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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.
