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WASHINGTON, DC-A local investor has acquired a small office building in Dupont Circle. Located at 2031-2033 Florida Ave., the five-story, 12,457-square foot office building traded for $5.25 million. CB Richard Ellis’ Bill Prutting Sr. represented the seller, another local investor. Steve Solomon of Solomon Real Estate represented the buyer.

The building is 100%-leased with a law firm on the upper floors and two retail tenants on the first floor. Prutting tells GlobeSt.com that one of the selling points for the buyer was the low interest assumable financing that transferred with the property. The mortgage is for approximately $4 million at a below market rate of 5.5% with IO for the first five years, he says. Attracting financing that can be assumed is a common thread in the deals that have been closing in DC. “It makes it easier to sell a property and achieve better cap rate on the sale,” Prutting says. The cap rate on this building was close to 9%, he reports.

There were few comp sales in Dupont Circle against which to compare this transaction–although in this case that is more reflective of the tight submarket. Buildings here come up for sale infrequently because it is such as strong retail area and has the advantage of a metro stop, Prutting says. In January, Cassidy & Pinkard Colliers brokered the sale of two small office townhouses in Dupont Circle: 1709 N St., NW–a historic four-story 4,626-square-foot structure–which sold to the Republic of Mauritius for $2.2 million; and 1730 Massachusetts Ave., NW–a three-story, 10,119-square-foot building that sold for approximately $5.5 million.

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