the $758-million ApolloReal Estate Advisors Value Enhancement Fund VII, LP. Jones LangLaSalle's William Craig and its Public Institutions GSA NationalBroker Contract Account team represented government.


This summer, Municipal Associations sold the nine-story,131,141-sf building for $44.9 million. BillCollins, Paul Collins, Drew Flood, Jud Ryan and James Cassidy ofCassidy & Pinkard Colliers represented the seller. Duringnegotiations for the sale it was unclear whether the JusticeDepartment would renew the space, according to comments Ryan madeto at the time. Cassidy & Pinkard Colliers did notreturn a call to in time for publication today.


The owners will embark on a $7-million renovation of thebuilding in conjunction with its newly renewed lease, according toan earlier statement by Apollo. The Bureau of Prisons will remainin the space during the construction, according to a statement byLeBlanc. The building at 500 1st St. was built in 1969 and lastrenovated in 1989.


The lease renewal is yet another example of the federalgovernment shoring up DC's market, which has been suffering fromthe strong economic headwinds and credit crunch. Last month, forexample, the Secret Service renewed the 70,000 sf ofoffice space it leases at 1100 L St., a 12-story, 308,579-sfoffice building owned by Blake Real Estate. The federal governmentalso took 120,000 sf in 1717 H St., in two separate transactionsinked weeks apart last month. Matomic OperatingCo. signed a 60,000-sf deal with the Department of VeteransAffairs, followed by another 60,000-sf lease with the Department ofHomeland Security.

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