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WASHINGTON, DC-Hefty price tags have continued to adorn premium office properties in the District and the building at 1776 G St. is no exception. The 265,850-sf tower has come under new ownership in a recent transaction valued at $84.75 million, or $318.8 per sf. The buyer is Washington Real Estate Investment Trust and the seller is National Office Partners LP, a joint venture involving the Houston-based real estate company Hines and the California Public Employees’ Retirement System. As per district tax records, 1776 G St. has a 2004 assessed value of about $66.5 million. Cassidy & Pinkard handled the building’s marketing on behalf of the seller.

The freestanding structure is just one block from the White House and has more to offer than just class A office space in the city’s central business district. Built in 1979 and upgraded just last year, the building also features 9,850 sf of retail space and 740 sf of storage space. Rising eight stories above ground, 1776 has an additional three levels below-grade; two of which serve as the parking garage. The occupancy level in the building was up to 88% at the closing of the transaction. Tenants include the World Bank, which has a lease on nearly 90,000 sf until the end of July 2005, and the International Monetary Fund, which is committed to its 61,000 sf of space until the end of 2005.

For WRIT, the acquisition represents another feather in its cap, adding one more stable income producing office building to its 61-property portfolio, which includes 25 office properties, 16 industrial/flex buildings, 11 retail centers and nine multifamily offerings. And indeed, prospects for the building yielding even higher profits in the near future render the purchase a solid investment. “There’s upside with one floor currently being vacant,” WRIT CFO Sara Grootwassink tells GlobeSt.com, “and we believe that the location is irreplaceable.” Full service class A office space in the District currently rents for an average of $41.50 per-sf, according to Advantis Real Estate Services Co.’s Mid-Year 2003 Report.

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