The building had been placed on the market about a year and a half ago and then pulled after it didn't receive satisfactory offers. It was sold for all cash after a round of soft marketing, according to Gichner. "The buyer got a good deal on this building – it is a very disciplined entity," Berkman tells GlobeSt.com."Pricing had been higher before, but buyers with cash speak volumes in this market." Berkman characterized the LLC as a trust.
Built in 1963, the class B building is 97% leased class B office building. It is one of a handful of DC buildings that have traded in recent months. September, in particular, saw a wave of activity with the sale of 1999 K St., for $830 per square foot between Vornado Realty Trust and Germany-based Deka Immobilian GmbH. Other recent examples include 1099 New York Ave. in the CBD, which just traded for $90.5 million or $517 per square foot at the end of September; the 570,038-square-foot Willow Oaks Corporate Center in Fairfax, VA, which was acquired by KBS REIT II for $112 million and Potomac Center North, an office building in the city's SW quadrant.
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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.
