WASHINGTON, DC-An East End office building, 1350 Eye St., NW,has been recapitalized by Edge Fund Advisors, HSBC AlternativeInvestments Limited and a syndicate of HSBC private bankingclients, with the purchase of an 80% stake in the 11-story,381,000-square-foot building. Located on Franklin Square Park andwithin three blocks of the White House, the fully leased officebuilding qualifies as trophy status. Gerald P. Trainor withTranswestern represented the seller, Beacon Capital Partners.

This transaction follows a December 2009 deal in which Edge andHSBC made a 90% joint venture investment in 1625 Eye St. Bothassets were acquired at less than $600 per square foot, at caprates over 6%, Mark R. Keller, head of Edge Funds, tellsGlobeSt.com, which is "well below replacement costs."

The companies had started working on the 1350 Eye St. deal firstthen put it aside when 1625 Eye St. came on their radar. Founderand former head of Republic Property Trust, Keller is tracking aselect group of top markets--including San Francisco, New York andBoston--with an eye to making additional investments with HSBC. "Wethink we will have the opportunity to acquire similar trophy-likeoffices in these markets at attractive pricing."