BentallGreenOak Sells DC Office Asset for $59M

The new owner secured a $41.3 million seller carryback loan for the acquisition of the 157,050-square-foot office building.
1717 Rhode Island Ave. NW. Image courtesy of JLL

BentallGreenOak has finalized the $58.5 million leasehold sale of a 157,050-square-foot office property in downtown Washington, D.C. Tritower Financial Group acquired the building and financed the purchase with a $41.3 million seller carryback loan, according to public records.

Located on a half-acre parcel at 1717 Rhode Island Ave. NW, the 10-story building was completed in 2004. The property has private terraces, a gym, a two-story lobby and a three-level parking structure. The new owner will execute a capital improvement plan that will include remodeling the lobby and expanding the fitness studio, according to Tod Brainard, chief investment officer at Tritower.

At the time of the sale, the asset was 86 percent leased to six tenants with a weighted average lease term of 7.3 years. The building serves as the home of Uber’s East Coast hub, Steve Case’s Revolution and The Case Foundation.

The property is adjacent to the historic Cathedral of St. Matthew the Apostle. The land is subject to a 97-year unsubordinated net ground lease held by the Archdiocese of Washington which expires in December 2099, CommercialEdge data shows.

JLL Senior Managing Directors Jim Meisel and Andrew Weir, Managing Director Matt Nicholson and Director Dave Baker negotiated on behalf of the seller.

In December, BentallGreenOak also sold Hollis Business Center, a 225,500-square-foot office building in Emeryville, Calif. Beacon Capital Partners purchased the asset for $129.5 million.