Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-A Capitol Hill office has traded for $44.9 million. Municipal Associations sold 500 First St., NW, to Polinger Development Co. Bill Collins, Paul Collins, Drew Flood, Jud Ryan and James Cassidy of Cassidy & Pinkard Colliers represented the seller in the transaction.

The Federal Bureau of Prisons currently occupies the entire 131,141-sf building. While negotiations were going on for the sale, the buyer did not know if GSA would renew the lease or not, Ryan tells GlobeSt.com. If it hadn’t, he says, it wouldn’t have been a significant blow as demand for space in Capitol Hill–a very small enclave in the District–is quite high. “There has been demand, particularly for class A space, by lobbyists and associations to be closer to the Capitol.”

Part of the attraction for the building during the marketing phase was that a buyer would be able to capture some of that demand, he says. According to a GVA Advantis report, the average asking rental rate for available space in Capitol Hill and nearby NoMa was $45.37 per sf at the end of March 2008. Asking rental rates for Class A space average $48.58 per sf and class B space is averaging $40.72 per sf.

Polinger opted to try to keep the GSA as a tenant. Ryan says it will be spending roughly $100 per sf in improvements.

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?


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.