WASHINGTON, DC—An office on the Capitol Riverfront is trading, with a source pinpointing the purchase price at $78.9 million, or $324 per square foot, for GlobeSt.com.
Lionstone Investments and Hermes Real Estate announced the acquisition of the 243,000-square foot building at 100 M St., SE yesterday, although they did not reveal the pricing. The property, which delivered in 2008, is approximately 80% leased to such tenants as Parson, Regus, Dutko Grayling, and Gordon Biersch.
The acquisition is the first investment under the $250 million joint venture formed between Lionstone and Hermes to invest in primarily office properties in high-growth US markets.
Monument Realty advised on the acquisition and will provide property management and leasing services for the property. Eastdil Secured represented the previous owner on the sale of the building and arranged acquisition financing.
Once belonging to the now defunct Opus East, 100 M St., SE eventually traded to Northwood Investors in 2010 when it purchased the building's note. At that point it was only 45% leased. Two years later HSBC Realty Credit Corp. provided a $54.7 million loan for the building, which by that point had built up its occupancy to 70%.
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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.
