WASHINGTON, DC-Earlier this month, Akridge/First Potomac Realty closed on 1200 17th St., NW--a value add deal in that the companies acquired it for $39.65 million with plans to invest roughly $110 million to construct a new 170,000-square-foot building. Meanwhile, the owner, the National Restaurant Association, will lease back its space for six months while it finalizes its relocation to another property.

Getting the zone change went surprisingly smoothly, CBRE SVP Manny Fitzgerald tells GlobeSt.com. "The seller didn't have to go through the PUD (Planned Unit Development) process," he said. Instead, it was able to use the easier MAR (Map Amendment Route). "If NRA had to go the other way--using PUD--it would have taken months longer and it would have been very expensive."

Fitzgerald says that rezoning the building, NRA "was able to achieve $233 per FAR foot, a significant number in this market." He reported that after the US Institute for Peace relocated from 1200 17th St., NRA weighed its options and, guided by CBRE, opted to rezone the property from SP-2 to C-4--a zoning change that allows twice as much density on the site. That is how the new owners are able to essentially double the existing building’s 85,000-square-foot footprint.