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WASHINGTON, DC-The Mercury Building, located in the prime downtown area at 1925 K Street gets a new owner with the reported $27.3 million acquisition of the 148,400-sf structure by a joint venture involving Bresler & Reiner Inc. and The Kaempfer Company Inc. B&R will own 85% of the building and Kaempfer will have a 15% stake, as well as the property management responsibilities. The deal is expected to close within the next few months.

The seller is the Communications Workers of America, which made the building its headquarters for three decades before moving to 501 3rd Street in 1992, putting itself within blocks of the US Department of Labor and the Capitol. An eight-story structure with a 2003 proposed value of nearly $23 million, the Mercury Building has been described as a Class B or C-Plus building and is home to such tenants as the AFL-CIO, the US Surface Transportation Board, and several dental and law offices. The building had been on the market for a few months and attracted a great many potential buyers. The high price Mercury commanded is due to its locale in a high-demand area where there are few properties up for sale and little space for future development.

“You’re looking at an irreplaceable location,” B&R’s COO Sidney M. Bresler tells GlobeSt.com. “We’re viewing this as an irreplaceable location and an opportunity for the future, which is where the company’s focused as it relates to future acquisitions. Once this transaction closes, we will have acquired over the past seven months almost 950,000 sf of office and flex space; this being the third transaction.” Speaking about future plans for the building, Bresler says, Mercury “is viewed as a potential development site.” However, any development plans will have to wait for several years, as some of the building’s occupants hold leases that will not expire for another five years.

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