WASHINGTON, DC-The United Negro College Fund is acquiring an office condo at Progression Place, a mixed-use project under development in DC’s Shaw neighborhood. It paid $23.8 million for the 50,000-square-foot office condo--a price point that puts it roughly in the middle of the range at which office condos have been trading in the District.
Located at 1805 7th St., NW, Progression Place is being developed by Broadcast Center Partners, a venture between Four Points and Ellis Development. It will consist of 100,000 square feet of office, 205 apartment units and 20,000 square feet of retail. It is close to Howard University, which was key to UNCF, says Manny Fitzgerald, executive vice president and head of CB Richard Ellis’ Nonprofit Practice Group. CBRE had been charged by the association to find it a new headquarters site--it is currently located in Fairfax, VA--that supports its mission.
The office condo ownership model was also attractive, as it is to many non-profits. DC’s office condo market has stalled in recent years due to the recession, and price points have ranged across the board as a result, Fitzgerald says. “At the trough of the recession I would say office condos were trading at $400 per square foot and at its height, perhaps $650 per square foot,” he says. CBRE is also marketing the remaining 50,000 square feet in the project. It could either be leased as office space or sold as an office condo, he says.
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