WASHINGTON, DC-ASB Real Estate Investments has snapped up a Capitol Hill building that will be leased by the University of the District of Columbia through 2026. It paid $53.5 million for the 88,000-square foot building. The seller was Brookfield Asset Management, which has owned the property since 2004. The purchase was made on behalf of ASB's Allegiance Fund, a $2.7 billion fund that invests in core real estate.
The building's long-term lease was a key attraction for the fund. Also, Robert Bellinger, president and CEO of ASB Real Estate Investments, notes that not only does the property provide a steady and strong current income stream but there is also upside potential via the site's unused FAR. "Over time, Washington D.C. has proven to be one of the nation's most secure and attractive investment markets for commercial real estate," he says in a prepared statement.
ASB's Allegiance Fund owns two other office properties in the District--455 Massachusetts Ave. and 900 G. St., which is under construction and slated for completion in 2015. 455 Massachusetts recently secured achieved LEED for Existing Buildings Platinum certification, aided by the Cassidy Turley Sustainability Services team.
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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.
