Bethesda Office Asset Changes Hands for $106M
- May 31, 2016
Washington—Carr Properties has acquired 7272 Wisconsin Ave., a 163,000-square-foot office property in the Central Business District of Bethesda, Md., from an entity controlled by the American Society of Health-System Pharmacists, for $105.5 million.
The four-story building will be redeveloped into a high quality mixed-use development project that will consist of office, residential and retail uses in excess of 900,000 square feet. The development will also incorporate the new Bethesda Purple Line Station, a new entrance to the Metro Red Line and a below-grade tunnel for the Capital Crescent Trail.
“We believe that the Apex site, as redeveloped, will be the new commercial hub of the Bethesda market with unparalleled access to public transportation, bike trails and the thriving restaurant and retail of Bethesda Row,” Oliver Carr, III, Carr Properties CEO, said in a prepared release. “We could not be more excited about this opportunity for our company.”
According to Scheer Partners’ latest Bethesda market report, the area has great appeal to tenants, property owners and residents, as it possesses all the core fundamentals that a great submarket needs, including transit options, high-end residential and established and well-known retail. Because of this, Bethesda continues to achieve higher rental rates, boast one of the lowest vacancy rates in the region and maintains an affluent tenant base. This past year has been no exception, with the average rental rate up to $37 per square foot and the vacancy rate remaining flat at around 13 percent.
In a related transaction, the American Society of Health-System Pharmacists will relocate its headquarters to Carr’s recently developed, LEED Platinum office building at 4500 E. West Highway in Bethesda.