WASHINGTON, DC-The paperwork has closed on one of the area's top mixed-use projects: Washington Harbour. The $370 million trade, first announced in June, has closed with the 557,961-square foot asset trading to Principal Real Estate Investors on behalf of a consortium of South Korean investors.

The seller was a joint venture between Rockpoint Group and MRP Realty. Simone Investment acted as the managing member of the consortium. Principal Real Estate Investors and Hana Daol Fund Management have been appointed as asset managers. The HFF investment sales team representing the seller was led by Jim Meisel, Dek Potts, Andrew Weir, Stephen Conley and Matt Nicholson.

What is notable about the deal, besides its price point, is the buyers. There has been much discussion about the impact foreign investors will have in the local commercial real estate market. When AFIRE's report came out at the beginning of this year, the DC CRE community took a collective gulp: the area had fallen a few notches in foreign investors' esteem.

Then, earlier this month Jones Lang LaSalle reported that foreign investment in the DC area rose 83% year over year, or $1.9 billion.

JLL also reported that single-asset acquisitions by foreign investors accounted for 75.4% of closed and pending sales activity in the District of Columbia, totaling $1.3 billion. "Comparably, 30% of buildings sold last year sold to foreign entities and historically since 2000, while foreign interest has always been strong for DC office product, only about 17% of buildings that sell, sell to foreign entities or partnerships….magnifying the 75% that much more," JLL said.

The Washington Harbour trade was part of JLL's calculations for the YTD figures, along with, of course, a number of other trades. These included Alony Hetz and Norges transactions, 1200 19th Street, NW, Commercial National Bank and the Bond Building.

What is interesting is the wide range of nationalities interested in DC; besides Europe and now South Korea DC is drawing investors from Kuwait and Israel.

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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.