Quadrangle signed a letter of intent to acquire a major stake inbuilding about a year ago. For its part, Resource Properties iswalking away from the deal with cash proceeds totaling an estimated$18 million.

Located on a one-acre parcel just a stone's throw from the WhiteHouse, the National Press Building was developed back in 1928 atthe corner of 14th and G streets. The 14-story structure isphysically attached via a common retail shopping area to theQuadrangle-owned National Place, a 1.5-million-sf mixed-useproperty. The National Press Building underwent a $100-millionredevelopment nearly two decades ago, and will succumb to anotherrenovation procedure under Quadrangle's eye. "We look forward toimproving the quality of the building significantly," saysQuadrangle president Christopher Gladstone, "while at the same timecarefully enhancing its special character and historicsignificance."

Quadrangle will handle management and leasing activities at theproperty, where office space had been marketed at about $35 per sf.Currently, there are about 100,000 sf of space available foroccupancy, but Resource America is confident that with Quadrangle'shelp, the space will not remain vacant for long.