WASHINGTON, DC—Akridge and Rockwood Capital have retained DTZ to market 7750 Wisconsin Ave., an office building in Bethesda, according to the Washington Business Journal.
GlobeSt.com has learned that the owners have identified a seller and negotiations are underway. According to the source, the building is being negotiated to trade at $75 million, or $630 per square foot and a 5.2% cap rate.
A request for comment sent to Akridge was not answered.
The building's history is a rags-to-riches story.
Akridge acquired this 1960s-circa building through a GSA auction in 2010. It had housed the National Institutes of Health for years, then sat vacant for another eight.
Akridge completely renovated and reskinned it into Class A boutique office space, securing LEED Gold Certification for New Construction. It was Bethesda's first class A property to be developed in a decade, delivering nearly 120,000 square feet to the market in Q4 2012.
Initially, though, it did not succeed in completing many leases. Then, a large deal with Monument Bank for the first floor fell through in Q3 the following year, according to a Cushman & Wakefield report at that time.
In 2014, the owners announced that six long-term leases were signed with a local Lodging REIT, Carnemark Systems and Design, KVS Title, LSoft International, Sandy Spring Bank, and SunEdison, bringing the building's occupancy rate to over 65%.
Today the building is 97% occuppied, according to DTZ, via the WBJ.
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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.
