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WASHINGTON, DC—Chicago-based fund manager Rreef has acquired 1250 Eye Street, N.W. on behalf of an institutional client, for $73.8 million, according to a source, from TA Associates Realty, a Boston-based adviser to pension fund investors. The sale, which closed in May, illustrates Rreef’s ongoing interest in the Washington, DC, market, a spokesperon tells GlobeSt.com.

The 1250 Eye Street property is in the heart of Downtown Washington, an area that block by block is rapidly redeveloping. Finding competitive pricing for properties in the central business district has become extremely difficult, many institutional investors acknowledge, as just about every investor from conduit to bank to life insurance company wants to own a piece of real estate here.

For instance, in June MetLife Real Estate Investments placed a $140.5 million, fixed-rate mortgage on a property one block away at 1350 Eye Street N.W. The building is a 345,990-sf Class A office building that is 98% leased to 25 tenants including several law firms. The borrower is controlled by an affiliate of Beacon Capital Partners, LLC. The asset is now part of Beacon’s Fund IV, a $2 billion real estate fund that closed in April.

Rreef’s acquisition is a 12-story, 172,213-sf office building located at the corner of 13th Street and Eye Street and will undergo interior upgrades. Rreef North America manages $34.3 billion in pension fund real estate investments.

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