WASHINGTON, DC-Prices in many parts of the District are too rich for Monument Realty’s blood, CEO Michael Darby tells GlobeSt.com. So it is taking another tact--the B-plus, A-minus value-add space, which is admittedly a narrow one, but the company has still managed to find prospects. It recently acquired 2055 L St., NW, as it earlier announced, for $12.8 million. It plans to invest another $18 million in a renovation and then lease the space that is remaining--the building is partially an office condo--for $45 per square foot, Darby says.

The building, also as the Midtown Building, was purchased from Verizon with Monument’s partner, Angelo, Gordon & Co., for cash. Brian Dawson of Cushman & Wakefield represented Verizon in the sale. Monument and Verizon structured the transaction so that Verizon would retain ownership of the lower floors of the building where it houses telecommunication equipment.

Monument is taking ownership of approximately 103,000 square feet of office space on the top three floors and 2,700 square feet of ground floor retail. The company will manage the entire property and control the common areas, including the main lobby, garage and elevators.

Monument also has the right to expand the building vertically with two additional floors. Darby says it may consider such a project if there is sufficient demand--right now, he relates, the company is sticking with its low-key approach. “We see solid demand for B-plus office space in the District. Renovating the building to add two additional floors would price us out of that market.”