Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-An office building in the heart of the CBD has traded for $50.9 million, or 675.74 per sf. The 75,457-sf, 10-story 2021 L St. was sold to the American Society of Hematology by 2021 L Street Investors, a private ownership group led by Mark Rivers of Potomac Development Partners.

Woodmark Commercial Services’ Geoffrey Kieffer represented the building owner. The American Society of Hematology was represented by Paul Ehrenreich of Cresa Partners.

2021 L Street Investors acquired the building from the NFL Players Association in June 2007 for $24.3-million in a JV with Lowe Enterprises Real Estate Group-East. The intent was to redevelop the then-53,925-sf headquarters into office condos. The new owners went through the rehab, adding two additional floors, new mechanical, electrical and plumbing systems, and a new façade on the North and South facing walls. Plans to sell the building as office condos, though, were put aside when the owner got an offer from the association, Kieffer tells GlobeSt.com. No contracts had been signed at that point.

The association is beginning tenant improvements with a goal of occupying the space in the latter half of 2009. It will occupy the top five floors and lease the bottom five.

There are only a handful of buildings in the District that offer condo space. Yet demand appears to be mixed for these products. Kieffer, for instance, reports little demand for office condos, given the scarcity of supply. His observation is bolstered with some anecdotal evidence: the American College of Surgeons, for instance, had toyed with the idea of selling the remaining space of a building it purchased last year at 20 F St. as condos. By the time it broke ground, though, those plans had apparently been abandoned.

But there is a case for office condos in the District. Home to many non-profits and associations that do not require huge amounts of space, office condos often are more cost effective. “I have seen some demand for office condos in recent months for this reason,” Tonya Ginter, director of research and marketing for GVA Advantis, tells GlobeSt.com. One example is J Street Development’s 111 K St. office building in NoMa, where sales are proceeding well, the company recently reported. So far, five floors have been sold–one to the Sierra Club–and two more are under contract.

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.