An 109,959-sf, 11-story corner office building on top of the Metro Center station, the class B building is about 90% occupied. The J Street venture plans to renovate the building's exterior facade and entry, main lobby, common area corridors and restrooms. "This is a great assets, very well positioned in the heart of Downtown," J Street Development president Bruce Baschuk tells GlobeSt.com. The venture acquired the building at below replacement cost, in an all cash transaction--thanks to UBS Global Asset Management, he adds. "Right now, obviously, cash is king in this market so having them as a partner is big asset for us." J Street has acquired development prospects with this fund in the past, he says; this building is the duo's first joint acquisition.
The deal was also facilitated by the company's merger with Woodmark Cos. earlier this year, Baschuk says, as having Woodmark's leasing and management expertise under its roof has helped to attract more institutional interest in its ventures. Woodmark will be managing the renovation, after which it will reposition the building.
Although he declined to tell GlobeSt.com what the venture paid for the building, Baschuk did say that it was in line with recent transactions in this submarket. Earlier this month, 1401 K St. was acquired by Guardian Realty Investors from AEW Capital Management for $53.8 million, or $432 per sf. In June 1331 L St. traded for $462.79 per sf.
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