WASHINGTON, DC-The Canada Pension Plan Investment Board hasacquired a 45% equity stake in two office buildings VornadoRealty owns in the District: 1299 Pennsylvania Ave., called theWarner Building, and 1101 17th St., NW. The $91 million CPPIB hassunk into the properties represents its first real estateinvestment in Washington, DC’s CBD.
CPPIB is assuming 45% of the existing mortgage debt. The twoassets have a total implied value of $526 million. CPPIB was unableto return a call to GlobeSt.com in time for publication.
Vornado realized a net gain of approximately $54 million on thesale of the Warner Building to be recognized in the fourth quarter.The gain on 1101 17th will be recognized when Vornado monetizes itsinvestment. Vornado will retain its 55% ownership interest andcontinue to manage and lease these properties.
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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.
