ARLINGTON, VA-TIAA-CREF has acquired what amounts to a no-brainer office property in the Washington, DC area: a fully-leased, class A office building in the Rosslyn submarket. The acquisition price is $145.5 million. Bill Collins, Paul Collins, Drew Flood, James Cassidy and Jud Ryan of Cassidy Turley represented the seller, an affiliate of Beacon Capital Partners, LLC. Cassidy Turley did not return a call from GlobeSt.com in time for publication.
The 303,262-square-foot, 19-story building, located at 1616 N. Fort Myer Dr., has the federal government as an anchor tenant, as well as government contractors and a consulting firm. It is within walking distance of the Rosslyn metro. Beacon Properties acquired the building more than fifteen years ago, for approximately $103 million.
Even apart from the building’s solid fundamentals, the acquisition is not a surprising one for TIAA-CREF. As do most institutional investors, it tends to focus on high-quality assets in strong locations. Last month, for example, it spent $119.4 million for the Westlake Center office tower in downtown Seattle.
Not that the company is solely interested in the safety of class A office assets. Earlier this year CBL Associates Properties and TIAA-CREF formed a $1-billion joint venture to invest in retail.
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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.
