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WASHINGTON, DC-One year after it traded hands Union Square has been sold again, this time for $262 million. JP Morgan Investment Management recently sold the two-building, 609,540-sf property as well as an adjacent, entitled land parcel to Los Angeles-based CIM Group. It had acquired the building last year for $235 million. Jones Lang LaSalle managing directors John Kevill and Collins Ege represented JP Morgan.

The JP Morgan fund holding Union Square was more focused on true trophy quality properties with long-term leases in place, Kevill tells GlobeSt.com. Union Square has a short-term lease exposure with the expiration of the DC government lease there.

Union Square is 100% leased to the GSA, which houses four of its District of Columbia agencies on site. GSA plans to relocate one of its divisions, in 2009, according to Kevill. CIM saw the expiration as a short-term releasing opportunity, which was one driver behind the acquisition, he says. Just as significant to CIM, he continues, was the potential development opportunity. “Developing an additional property at that site–a property that will have unfettered views of the US Capitol in a market that is becoming increasingly supply constrained–will be very valuable when it is delivered.”

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