WASHINGTON, DC-A CBD office building, 1776 Eye St., NW, has traded for $119.6 million. As reported earlier on GlobeSt.com when the building went under contract, New York-based Rockrose Development Corp., is the buyer and Washington Republic LLC is the seller. At the time, the reported asking price was $140 million and the contract price unrevealed.
There have been a few changes since then and now, Transwestern’s Gerry Trainor tells GlobeSt.com. Transwestern’s Institutional Commercial Group brokered the sale on behalf Washington Republic, LLC.
The building lost its anchor tenant when the Nuclear Energy Institute opted to take 50,861 square feet at 1201 F St., NW, instead of renewing at 1776 Eye St., NW, he says.
“There was also in place debt that had to be assumed, which is another reason the building traded where it did,” Trainor says. Once the space vacated by NEI is filled, he adds, the building will have traded at a stabilized 6-and-three quarters to a 7% cap rate.
Current asking rates for the 10-story, 224,666-square foot building are in the mid $50s per square foot range. However, the new owner is planning substantial renovations, after which it is expected rents will increase.
Current tenants of the building, which is located in the Golden Triangle submarket, include The Gavi Fund, Carr Properties, Trak Legal Staffing, Conoco Phillips and The Representative of German Industry and Trade. Delta Associates reports that vacancy rates in the Central Business District are currently at 7.2%, but are starting to fall.
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