WASHINGTON, DC-Two core properties in the District have traded, illustrating a fundamental fact about this market--even in the midst of uncertainty about the government's direction and a somewhat lackluster economy, you just can't go wrong with core real estate in the District.

The two trades are 1400 New York Ave., NW and 1990 M St., NW.

Nakash Holdings, a closely held investment company controlled by the founders of Jordache Enterprises, has acquired 1400 New York Ave.

The 175,000-square-foot office building was purchased for an undisclosed price, but the buyer says in its release that it "is believed to be one of the capital's biggest office deals this year." The property is leased to the Justice Department, which will stay on for another 15 years after its current lease expires next year.

In a separate deal, Meitnerium LLC purchased 1990 M St., for approximately $42 million from Equity M Street LLC, with Transwestern's Gerry Trainor representing the seller. The 110,129-square-foot class B office was approximately 77% leased at the time of sale, making it a value add play for the buyer. Still, though, its address mitigates much of the risk – driving home the point that DC is still a solid bet for investors and lenders.

"Investor demand for core product remains strong and there is an abundance of aggressive capital chasing deals," Scott Homa, Jones Lang LaSalle's research director tells GlobeSt.com. Underwriting has generally become a bit more conservative as the leasing market has slowed over the past 18 months, he acknowledges – but there is still seeing solid pricing on sales transactions thanks to low interest rates and limited product.

In short, he says, "well-located assets such as 1400 New York and 1990 M will always remain in favor with investors due to their irreplaceable locations within the heart of the nation's capital." Most of the softness that we've witnessed in the sales market lately has involved assets outside the Beltway, as those buildings don't confer the same locational benefits as core, metro-accessible product, Homa concludes.

Instant Insights /

Investors to Worrywarts: You Can't Go Wrong with Core

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