WASHINGTON, DC—A source tells GlobeSt.com that Brookfield is selling 2401 Pennsylvania Ave., NW, for $73.8 million, or $508 per square foot, to Principal Global Investors.
The 12-story, 145,060-square foot CBD office, which also has a retail component of 19,000 square feet, is 91% occupied. Tenants include the AFL-CIO Utility Workers United, Marcel's Restaurant and McFadden's.
Deals such as this illustrate DC's price resiliency, despite the still lackluster fundamentals.
Job growth, for the 12 months ending July 2014 has been 0.6%, or 19,800 positions, Delta Associates noted in a recent market report. There was positive absorption of 506,000 square feet during the third quarter of 2014 and positive absorption of 649,000 square feet year to date, Delta also said.
Unfortunately, however, the direct vacancy rate of 11% edged up slightly from the end of 2013, when it was 10.8%.
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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.
