This summer, Municipal Associations sold the nine-story, 131,141-sf building for $44.9 million. Bill Collins, Paul Collins, Drew Flood, Jud Ryan and James Cassidy of Cassidy & Pinkard Colliers represented the seller. During negotiations for the sale it was unclear whether the Justice Department would renew the space, according to comments Ryan made to GlobeSt.com at the time. Cassidy & Pinkard Colliers did not return a call to GlobeSt.com in time for publication today.
The owners will embark on a $7-million renovation of the building in conjunction with its newly renewed lease, according to an earlier statement by Apollo. The Bureau of Prisons will remain in the space during the construction, according to a statement by LeBlanc. The building at 500 1st St. was built in 1969 and last renovated in 1989.
The lease renewal is yet another example of the federal government shoring up DC's market, which has been suffering from the strong economic headwinds and credit crunch. Last month, for example, the Secret Service renewed the 70,000 sf of office space it leases at 1100 L St., a 12-story, 308,579-sf office building owned by Blake Real Estate. The federal government also took 120,000 sf in 1717 H St., in two separate transactions inked weeks apart last month. Matomic Operating Co. signed a 60,000-sf deal with the Department of Veterans Affairs, followed by another 60,000-sf lease with the Department of Homeland Security.
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