WASHINGTON, DC—What was that about DC losing its appeal to foreign investors? Following on the heels of news that a Brazilian-based fund was acquiring 2025 M St., NW, comes a report that AFIAA, the investment foundation of 35 Swiss pension funds, has acquired the iconic arch property in Chinatown, or "Arch Square." The fund paid $104 million.
The office-and-retail property was built before World War II and extensively refurbished in 2012. It is fully leased to a tenant base with staggered leases.
Some 80% of the rental income in the building is generated by the retail tenants, namely Walgreens. Other tenants include Sports Zone Elite, and Panera Bread. The Alliance of Automobile Manufacturers occupies the office portion of Arch Square, which is located on the corner of 7th & H streets.
With its focus on international property investments, AFIAA's presence in the DC market is welcome. It expands the diversity of foreign investors active here--as does the Brazilian company believed to be buying 2025 M St.--and also helps rebut a finding reported earlier this year in the AFIRE survey, namely that foreign investors were losing interest in the DC market.
GlobeSt.com reached out to AFIAA for comment. We will update the story when further information becomes available.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.