Watergate Office Goes to Market with $105M Whisper Price
Newmark Knight Frank is marketing 2600 Virginia Ave. on behalf of Rockwood Capital.
WASHINGTON, DC—Rockwood Capital has put the 11-story Watergate office building at 2600 Virginia Ave., on the market. Newmark Knight Frank is marketing the 214,508-square-foot tower for the company with a whisper price of $105 million.
Rockwood acquired the building in 2016 from Penzance for $80 million.
The Watergate, of course, was the site of the 1972 break-in of the Democratic National Committee headquarters, a chief selling point for the property.
“The Watergate Office Building is one of the most storied buildings in the United States,” said NKF Executive Managing Director Jud Ryan in a prepared statement.
The property is currently 90% leased, including the headquarters for ten of its tenants, and recently underwent a $14 million renovation. Improvements include a new fitness center, bike storage and repair station, electric car charging stations, and updated restrooms, common areas, and a renovated lobby. “Rockwood’s recent improvements at the Watergate Building have driven significant leasing velocity over the last few years,” Ryan said.
The Watergate Office Building connects to the 336-room, 5-star Watergate Hotel, which recently underwent a $125 million gut renovation. The Watergate complex is home to 60,000 square feet of restaurant, retail, and service amenities within the Watergate Shops. The complex is currently upgrading its central plant HVAC system, which will free up even more rooftop space and offer the next owner some upside, Ryan said.
The Watergate Office Building was built in 1967 as part of the 10-acre Watergate complex which, at the time, was the largest privately-funded urban renewal project in the history of Washington, DC. Designed by famed Italian architect Luigi Moretti, and originally developed by the Italian firm Societa Generale Immobiliare (SGI), the project was the first mixed-use development in the District. The Watergate complex consists of six 12- to 14-story buildings around a central retail plaza, including three luxury residential buildings, the Watergate Hotel, the Watergate Office Building and the 600 New Hampshire Avenue office building. The complex is named after the terraced steps to the river from the western side of the Lincoln Memorial.