The eight-story, 112,000-sf medical office building, which wasbuilt in 1986, is now 96% leased to 49 tenants. Perseus RealtyCapital represented the sellers.
Tom Howland, managing director of Perseus, tells GlobeSt.comthat the building was mismanaged and undervalued when it wasacquired with occupancy at 82%--an aberration in the tightlyoccupied West End. The building, located a short distance from thearea's major hospitals, including George Washington Hospital,Georgetown University Hospital and Sibley Hospital, is ideal for amedical office building. "The buyers saw this as an opportunity tolease up what could be a very attractive building after minimalupgrades," Howland says.
The sellers invested $2.5 million to $3 million in capitalupgrades that included improvements to the exterior entrance, mainlobby, interior corridors, restrooms, elevator cabs and HVACcontrols. Rents rose from the mid $30s to low $40s, Howlandsays.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
