Breaking NewsGlobeSt.com will be offline for scheduled maintenance Friday Feb. 26 9 PM US EST to Saturday Feb. 27 6 AM EST. We apologize for the inconvenience.

 
X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-Developer DRI Partners Inc. and joint venture partner CarrAmerica have secured a buyer for their new 201,500-sf, office building at 799 Ninth St., less than a year after its completion. The 10-story, class A structure is under contract to be sold to German fund manager Blue Capital Investments for an estimated $78 million, or as noted by CarrAmerica chief investment officer Karen Dorigan during a recent earnings conference call, about $385-per-sf.

Located in the District’s East End submarket, the glass-and-steel structure features three floors of sub-level parking capable of accommodating up to 155 vehicles. CarrAmerica senior vice president of capital markets Stephen Walsh tells GlobeSt.com the property cost approximately $60 million to develop and is 95% leased to federal government entities. Occupants include lead tenant the US Mint, which pre-leased its 150,000-sf space in a 20-year deal for $42-per-sf, and the General Services Administration, which occupies two floors.

“Such a disposition is not normally part of our strategy,” Walsh explains. “We were brought in on this development by DRI. We normally don’t sell a downtown property.” As for Blue Capital, its interest in the new building, some industry insiders speculate, an early indication of what could be a flood of interest among German investors in US commercial real estate properties due to a German law that became effective in July. Germany’s Fourth Financial Market Enhancement Act allows open-end funds to increase such investments outside the European Union from 20% to 30% of total assets. Parties involved in the Ninth Street property deal expect the transaction to close in the fourth quarter.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.