One Independence Square Trades for $170M
Piedmont Office’s president C. Brent Smith says the REIT is pleased it sold the 334,000-square foot building because it reduces its exposure to the Southwest DC submarket.
WASHINGTON, DC—Piedmont Office Realty Trust has sold One Independence Square, located at 250 E. St., SW for $170 million, or $508 per square foot. The 9-story, 334,000-square foot office building is currently 94% leased to multiple governmental tenants. Originally constructed in 1991, the property underwent a major renovation in 2013.
Saban Real Estate, the real estate arm of Saban Capital Group was the buyer. “250 E St. is a great addition to our recent acquisition at 425 I St., NW, also in Washington DC,” said Bowen Hsu, Managing Director for Saban Real Estate.
Piedmont Office’s president C. Brent Smith says the REIT is pleased it sold the 334,000-square foot building because it reduces its exposure to the Southwest DC submarket. “The net sales proceeds will be used in the short-term to pay down our line of credit as we evaluate our pipeline of acquisition candidates,” he says in a prepared statement. “In addition to reducing our outstanding debt, we anticipate recycling a portion of the capital into assets in our strategic operating markets that exhibit stronger long-term growth.”
In the REIT’s quarterly earnings call CEO Donald Miller noted that the Washington DC market has slowed due to the amount of new supply and, more recently, the federal government shutdown. Ironically, he added, for Piedmont leasing in DC represents almost all upside as there is very little lease rollover for the company in area over the next five years.
The company first announced the sale in its quarterly call.