Clarion Sells One Metro Center in DC to Jamestown for $307M
- Aug 06, 2013
Clarion Partners L.L.C., of New York, has completed the sale of One Metro Center, a seven-story, 415,300-square-foot, trophy Class A building in the East End submarket of Washington, D.C., for $307.5 million, Clarion announced Monday. The buyer was Jamestown Properties, of Atlanta.
Bill Collins, Paul Collins, James Cassidy, Drew Flood and Jud Ryan of Cassidy Turley represented the seller.
One Metro Center was built in 2003 atop both Metro Center Station, the central hub of Washington’s Metrorail subway system, and a Macy’s (formerly Hecht’s) department store.
The building features a six-story central glass atrium, and its amenities include a fitness center, valet-only parking garage and landscaped rooftop patio. The location offers proximity to the White House, Treasury Department and Ronald Reagan Building.
It’s currently 100 percent leased, primarily to law and consulting firms, including law firms White & Case L.L.C., Ropes & Gray L.L.P. and Manatt, Phelps & Phillips L.L.P., as well as APCO Worldwide Inc., The McClatchy Co. and Research Triangle Institute, according to Jamestown.
The buyer also noted that One Metro Center faces a “moderate rollover profile in the short term,” in that leases on about 30 percent of the rentable square footage expire in 2015 and 2017.
“One Metro Center has been a strong performer since acquisition in 2005,” Jeb Belford, a managing director at Clarion Partners, said in a release. “Because we have a highly proactive approach to portfolio management, we have made the strategic decision to capitalize on the property’s fully leased status, premier location and top amenity package and execute a timely sale.”
“Jamestown has focused nationally on vibrant community centers and dynamic, mixed-use assets, and this property, centrally located in the East End and strategically situated above one of the city’s busiest transportation hubs, is an ideal complement to both our local and national portfolios,” Jamestown chief operating officer Michael Phillips said in a release.
Capital One provided a $155 million, seven-year loan, and PNC is also a participant in the financing, according to Jamestown. Cassidy Turley’s John Campanella and Paul Spellman secured the acquisition financing for Jamestown.
“Jamestown recognized the long-term value of acquiring a Class A building physically linked to the central hub of the Metro,” Cassidy said in a release, “and despite some near-term rollover, recognizes One Metro Center as a high-quality building in a great location that is only getting better with the delivery of CityCenter.”
CityCenterDC is the $950 million, 2 million-square-foot mixed-use development under way on the 10.2-acre site of the former Washington Convention Center.