WASHINGTON, DC-The National Press Club building in the city’s East End has traded at a sub six cap rate for $167.5 million. Affiliates of AEW Capital Management, L.P. and Quadrangle Development Corp. are buying the 420,000-square-foot building and Quadrangle affiliates will continue to manage and lease it. AEW acquired the property, at 529 14th St. NW, on behalf of the AEW Core Property Trust (US), an open-end core real estate fund.
Bill Collins, Paul Collins, Drew Flood, Jud Ryan and James Cassidy of Cassidy Turley represented the seller, Press Building, LLC. The building has an occupancy rate in the mid 90s, Ryan tells GlobeSt.com. More key, perhaps to the buyers, it is home to the National Press Club, which in fact is just one of a huge number of tenants in the building. "There are 145 tenants there--an unusually large number for the District," Ryan says.
The National Press Club leases the two top floors, lending an aura to the entire building as it has served as host to presidents, prime ministers and business and cultural leaders over the decades. It is also locked into a long-term lease of approximately 70 years. It was founded in 1908 and now calls as members more than 3,500 journalists and communication professionals.
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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.
