X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.

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.