DC Gem Brings in Staggering $493 Per SF

ICG principal Darik Elwan notes that, "given the current market conditions, and our focus on development and value-added investment opportunities, it was the right time for us to consider a sale." And judging by the price that 901 F St. fetched, the timing was quite right. The $493 per-sf purchase price constitutes one of the highest per-sf fees ever paid for an office property in downtown Washington, DC. Advantis Real Estate Services Co.'s Third Quarter 2004 Office Report provides a frame of reference for the sale, finding that the average sale price per-sf for class A office properties in the District in 2003 was $382.26; and for the year 2004, to date, the figure is $396.29.

Completed in 2000, 901 F St. was a redevelopment endeavor that incorporated into its design a Masonic Temple structure built on the site in 1869. In addition to its class A office offerings, the property also features 13,000 sf of ground-level retail space and a proposed total 2005 assessed value of $42 million.

"We received a tremendous amount of interest in 901 F St. from both domestic and offshore investors," says CBRE senior vice president John Norjen, "and the pricing was in line with our expectations for this one-of-a-kind trophy property." But the building's architectural history and trophy status were not the only factors that attracted a stampede of potential buyers; the property's tenancy was an attention grabber, as well. Polling firm the Gallup Organization is 901 F St.'s lead tenant, having pre-leased most of the building two years prior to its completion.