WASHINGTON, DC-With three buildings either trading or going under contract in recent days in the District--and at more-than respectable price points too--market observers are wondering what trajectory the latest trophy building to go to market will take. That would be 733 10th St., NW in the East End, one of the first buildings to be developed on spec after the financial crisis.
Developer Skanska has retained Eastdil Secured to market the 171,171-square-foot building, which now has three tenants. Eastdil Secured did not return a call to GlobeSt.com in time for publication.
Jones Lang LaSalle’s Scott Homa takes a stab at the price point the building might trade at. “We saw some recent trophy sales in Washington, DC, command prices in the $800 to $900 per square foot range,” he says, “and an asset the quality of 733 10th St.--given its location and quality tenant base--is likely to capture a sales price fairly consistent with those levels.”
Indeed, pricing for recent office sales here suggests that investors are still confident in the DC market, despite the scaling back by the federal government. One transaction, the Homer Building, is reportedly under contract for $315 million, a source told GlobeSt.com. The 421,901-square-foot, 96%-occupied building was only recently put on the market. Eastdil Secured is the broker for that building as well.
Other recent deals include Vornado Realty Trust’s acquisition of a 97.5% interest in a 130,000-square-foot East End building, 1399 New York Ave., for about $104 million. Earlier this week, New York-based Rockrose Development Corp. signed a contract to purchase 1776 Eye St., NW. Rockrose did not disclose the contract price, but the reported asking price was $140 million.
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