WASHINGTON, DC-Frankfurt-based KanAm Grund Kapitalanlagegesellschaft has retained Jones Lang LaSalle to market 1899 Pennsylvania Ave. It is marketing the 186,462-square-foot CBD property shortly after its sale of the 227,000-square-foot Evening Star Building for close to $180 million.
Asking price for this building is $150 million, or roughly $820 per square foot, Jones Lang LaSalle’s John Kevill tells GlobeSt.com. He adds that he expects the building to trade in the sub 6% cap rate range. Besides Kevill, Collins Ege, Jim Molloy and Sean McDermott are handling the transaction with support from Steve Collins. Designed by Leo A. Daly, the 11-story building is fully leased.
The fund’s expectations for this trade--along with the premium price it got for Evening Star--point to not just DC’s strength as an investment destination but also the fact that pricing transparency has arrived--or at least is more clear than it was even six months ago.
"Funds that have raised money with the promise of certain returns over a certain time frame are using the current market to sell their assets because they have visibility as to what values are," Kevill says. "These funds can look at the market and finally understand what the exit pricing will be and provide realized returns to investors." For this reason, he adds, he believes more transactions will come to market in DC going forward.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
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.
