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WASHINGTON, DC-The 303,000-sf office building at 800 North Capitol St. has found itself a new home in the property portfolio of Galaxy Investments Inc. Seller NGP Holdings III LLC disposed of the property with the assistance of real estate services firm Cassidy & Pinkard. Details of the transaction have not been disclosed, however the property carries a 2004 assessed value of $99.1 million; a figure that gives a low-ball indication of what the price tag on the property might have been. Part of the deal includes a 99-year ground lease held by Gonzaga College High School that expires at the end of May 2089.

Built in 1991, 800 North Capitol is a class A offering with 270,600 sf of office space spread out among its 10 above-ground floors, 7,900 sf of ground-level retail space, and 24,500 sf of below-grade space for offices, a conference room and a fitness center. There are also three subterranean levels of parking space to accommodate approximately 230 vehicles. The property has always been a hot ticket for investors. In 1999, the building commanded nearly $74 million on the market, making it the fifth largest sale of the year.

Located on a corner just a stone’s throw from Union Station, the Supreme Court and the Library of Congress in the bustling Capitol Hill submarket in Downtown Washington, DC, 800 North Capitol is the right building in the right place, at the right time. “Capitol Hill is one of the most stable markets in the area right now,” Advantis Commercial Real Estate Services Cos. director of research David Masters tells GlobeSt.com. Vacancy rates in the Capitol Hill submarket are currently at a low 3.6%, and leasing rates for class A properties in the area are at an average of $36 per-sf, according to Advantis’s Mid-Year 2003 Office Report for the Washington, DC Metropolitan area. “Investors are always interested in stable markets; that is why you are seeing such a demand for this type of property.”

But the building is a prize acquisition for a number of reasons in addition to its prime location. Unlike many office properties in the District, this building is freestanding and offers views from all four facets. Adding to the property’s attributes is the fact that the federal government occupies most of the property under long-term lease agreements. Federal offices that call the building home include the Department of Labor, the Federal Maritime Commission, National Archives and Records, the Social Security Administration and the US Commission on International Religious Freedom.

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