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WASHINGTON, DC-In a transaction valued at a reported $77 million, Vornado Realty Trust has closed on its acquisition of the 370,000-sf office building at 2101 L St. Vornado bought the property through its Charles E. Smith Commercial Realty Division from a limited partnership in which two Vornado trustees, Robert H. Smith and Robert P. Kogod, are involved. In exchange for the prominent office structure, Vornado handed the owner partnership–listed on District records as 1100 21st St. Employees Assoc. LP–about $32 million in cash and 1.1 million newly issued Vornado Realty LP partnership units valued at an estimated $45 million. The deal includes Vornado’s assumption of a designated amount of existing mortgage debt.

Situated in the city’s CBD, 2101 L St is home to a variety of tenants ranging from the American Association for Clinical Chemistry, law firm Dickstein Shapiro Morin & Oshinsky LLP, and the General Services Administration, which has a lease on nearly 42,000 sf of space scheduled to expire in 2006. The property has a 2004 assessed value of just over $67.3 million. Dickstein Shapiro has a hold on its space until June 2005.

For Vornado’s CESCR division, the acquisition of 2101 L St. increases the company’s ownership presence in the thriving greater Washington, DC area market to 56 office properties, accounting for approximately 13.8 million sf. Vornado spokesperson Roanne Kulakoff tells GlobeSt.com that Vornado does not usually make direct comments on its strategy, but points to the company’s recently released 2002 Annual Report as indication that the purchase is in line with Vornado’s growth plans. “As a result of the [2002 Vornado and CESCR] combination, the company will be in position to capitalize on the favorable supply/demand characteristics of the Washington, DC office markets,” chairman Steve Roth says in a letter attached to the May 2003 report.

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