WASHINGTON, DC—PNC Bank has sold its Dupont Circle office-and-retail building to the Dallas-based L&B Realty Advisors for $60.75 million, or $1,253 per square foot. JLL's Bill Prutting Jr., brokered the sale of the fully-leased, 48,447-square-foot building on behalf of the seller.
It is another transaction that has breached the $1,000 plus per square foot price point marker. The drivers behind these small-but-growing transactions differ naturally—in this particular case, retail rents in place that are 30% below market was a major factor underlining the price, Prutting tells GlobeSt.com.
Current retail rents are in the range of $100 per square foot triple net, he says. "I truly believe that those rents are 30% below the market rate now and that represents tremendous upside for the owner."
The property is also unique -- "irreplaceable" is how Prutting describes it -- and located in a much-coveted part of town. "There is very little space available at Dupont Circle for office tenants now," he says. In addition forthcoming changes to the streetscape will be a "gamechanger" for real estate, especially retail real estate, at the Circle. "We are also expecting more attractive demographics that will continue to drive retail and office there," he says.
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