X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-Vornado Realty Trust has committed to buying the remaining 90% interest in the Bowen Building, a 231,000-sf trophy office building from Real Estate Capital Partners for $119 million. The Paramus, NJ-based REIT became partial owner of the class A site at 875 15th St. NW back in 2003 when it acquired the Kaempfer Co. and its real estate portfolio.

The 12-story property, which has a proposed 2006 assessed value of $78 million, underwent a redevelopment valued at approximately $100 million and remerged late last year. Situated in the city’s central business district two blocks from the White House, it is a product of a joint venture between Kaempfer and Real Estate Capital Partners. The property was originally built on the corner lot in the 1920s and designers of the redeveloped structure, Hartman-Cox Architects integrated façades of the earlier building into the new facility.

Before construction was completed, law firm Paul, Hastings, Janofsky & Walker LLP committed to 34% of the office space, or 69,500 sf. Today the property is 83% occupied by the firm and one other tenant under leases that expire in 2015 and 2020. Space at the Bowen Building, according to Spaulding & Slye Colliers International’s Skyline Review for winter 2005, leases for about $39 per sf.

Vornado will pay for the 90% interest in the Bowen Building by forking over $63 million in cash and assuming an existing debt of $56 million. The transaction is on schedule to close sometime next 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.