WASHINGTON, DC—1140 19th St., NW, a 72,648-square foot office building in the heart of the Golden Triangle district, has traded for $40.5 million.
American Real Estate Partners with joint venture partner The Davis Cos. sold the property to an undisclosed buyer. The Washington Business Journal reports New York-based Rockrose Development purchased the building. AREP and The Davis Cos. acquired the building two years ago as a value add play, paying $40.5 million for it and the adjacent office building, 1146 19th St., NW, which sold in July 2013.
After the acquisition, AREP and Davis Cos. spent $8.2 renovating 1140 19th St., NW., AREP's Managing Director Jon Dishell tells GlobeSt.com.
They introduced a spec suite program and via a "creative leasing campaign" brought the building to stabilized occupancy despite the "many physical challenges and historical lack of investment in the property, according to Davis Cos. Managing Director of Asset Management Cappy Daume. The building, though, had an "inherent strong location" however, and "the team did an amazing job re-imagining how this property could look and function for a new generation of office and retail tenants," he said in a prepared statement.
When the companies acquired the building, the DC area was in a bit of a psychological slump, Dishell says. "This was a period when sequestration and the budget cuts were in the headlines a lot." They had a depressing affect that was more anecdotal than actual, he says. However, these issues were not nearly as impactful, or long lasting, on the Downtown area, he says.
Editor's Note: Story updated to include the WBJ's report that Rockrose Development was the buyer.
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