X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-Washington Real Estate Investment Trust has entered into a purchase agreement to acquire 2445 M St. for $182 million, or $628 per sf. The company revealed the contract yesterday in an 8-K filing with the Securities and Exchange Commission. The transaction is expected to close no later than Q4 this year, once WRIT obtains lender consent for the assumption of a 5.62%, $102 million mortgage that has a maturity date of Jan. 2017, according to the filing.

A spokeswoman for WRIT described the pending sale to GlobeSt.com as a valuable addition to the company’s office portfolio. The firm is acquiring the nine-story, 290,233-sf, class A building from a private equity firm called Broadway Partners, she says. WRIT owns other office buildings close to its latest buy. It acquired 2000 M St. at the end of last year for $73.5 million. In March 2007 it acquired 2440 M. St, a class A, medical office building, for $50 million.

A RW Baird report analyzing the pending transaction estimates it will trade at an initial cash cap rate of 6.1% and a GAAP cap rate of 6.8%. If these numbers are accurate projections, the research note said, “they represent a modest increase over recent class A office transactions, which have remained sub 6%.” The fact that the seller is a private equity firm, Baird continued, is additional anecdotal evidence supporting its belief that the highly levered transactions from the past several years will unwind in the new credit environment giving REITs more opportunities to snap up high quality assets.

The 2445 M St. pending sale is indeed illustrative of the type of buildings that are now trading in the DC area, Tonya Ginter, director of Research and Marketing for GVA Advantis, tells GlobeSt.com. “We rarely see value add buildings trade any more – investors want the certainty of stabilized, class A assets.”

2445 M St. has a two-story, 21-foot high lobby and walk-out terraces on the two upper floors. The property also offers a 235-space underground parking garage, according to Broadway Partners’ Web site, which also reports that its major tenants are the Advisory Board, Patton Boggs and Wilmer Cutler.

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.