If the building closed on or around this price, it would be onpar with other recent transactions. In June the ConsumerElectronics Association acquired 1919 S Eads St., a 98,750-sf classA property from Charles E Smith for $388.86 per sf. In May 601 S.12 St. was sold to Brookfield Properties from National RetailProperties Inc. for $425.93 per sf. It is a 540,000 sf, class Basset.

Office valuations in this submarket can be difficult todetermine precisely due to the uncertainty created by theDepartment of Defense's Base Realignment and Closure Commissionlast year. According to the Arlington County's BRAC Transition Taskforce, some 76.8% of all office space here is expected to beaffected. "Part of the problem with Crystal City is that becausethe future renewals are uncertain it has caused some deals to holdoff," Eric Berkman, senior vice president at Grubb & Ellis inWashington, DC tells GlobeSt.com.

As it happens, the Department of Defense is Presidential Towers'primary tenant according to local real estate records. This can bea potentially destabilizing situation, depending on the terms ofthe government entity's lease and its long range plans.