WASHINGTON, DC-Nearly a year to the day that it acquired the building for a record low of $41.25 million, CoStar has sold 1331 L St. for $101 million in a sale leaseback, cash transaction. The buyer is an affiliate of Munich-based GLL Real Estate Partners GmbH.
A 169,429-square-foot building located a few blocks from the White House, 1331 L St. became a symbol--an ironic one--of the impact that the financial crisis was having on real estate at the time. The Mortgage Bankers Association had acquired the building before the crisis with high hopes for the building’s eventual occupancy and its own financial future.
CoStar snapped up the two-year-old asset on Feb. 5, 2010 for approximately $243 per square foot--one of the lowest prices paid on a per-square-foot basis for a new office building in Washington, DC in more than a decade. It then moved its headquarters from Bethesda, MD, after the District’s City Council approved $6.1 million in property tax abatements over a 10-year period. CoStar now says it may be eligible for additional incentives such as a five-year elimination of District corporate income tax and certain sale and use tax exemptions.
© 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.
