WASHINGTON, DC-J Street Development has sold a floor on its office condo building in the NoMa submarket at 111 K St., NE. Student Affairs Administrators in Higher Education has purchased the 10th floor, which is approximately 9,400 square feet. The purchase price has not yet been recorded. A second buyer, also an association, is poised to take another floor as well, J Street Development president Bruce Baschuk tells GlobeSt.com. "Hopefully we will able to announce that this week."
Baschuk declined to discuss pricing other than to say valuations appear to have settled at roughly 20% lower than when the building first delivered. A year-and-a-half ago J Street had three buyers ready to go forward, buyers that allowed J Street to secure construction financing. Two dropped out and for the last year activity and interest in the building has been very quiet. Baschuk says that has changed in the last 60 days, with the company now giving a couple of tours a week.
Bill Meyer of the Meyer Group represented NASPA, the students affairs association, in the deal. Bruce Pascal, Mark Klug and Doug Mueller of CBRE repped for J Street.
111 K Street is an 11-story, approximately 90,000-square-foot building. The first floor is retail, which Baschuk says is in the process of leasing up as well. The second floor is a conference room.
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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.
