DC Metro Area Attracts Steady Pace of Office Investment Sales
- Nov 12, 2013
The Washington, D.C., area has seen a rash of office property acquisitions in recent months (read about some of them here and here), some of them huge (you can find some of them here, here, here and here). But according to a report by Marcus & Millichap, over the past year, investors have been more interested in purchasing properties in the $1 million to $10 million range. And the median price of all properties sold declined about 5 percent to $232 per square foot, according to its third quarter office market report for the Washington, D.C., metro area.
CBRE Group Inc. arranged the sale of one such property on Nov. 1. 1801 Reston Parkway is a 28,000-square-foot office building located in the heart of downtown Reston, Va. Renaissance Céntro L.L.C. acquired it from Kapani Family L.L.C. for $8 million, or about $286 per square foot.
“This prominent corner office building is situated on 1.5 acres and could be retained as an investment property or potentially be redeveloped into residential apartments,” said William Prutting, first vice president of CBRE Private Capital Group/Investment Sales in a statement for the press.
Although the Greater D.C. area experienced a drop in property sales of more than $50 million over the past 18 months, it doesn’t mean that owners are reluctant to put such properties on the market. The Washington Business Journal recently reported Property Group Partners hired Eastdil Secured to market the James Monroe Building. The trophy-class office building is located at 2001 Pennsylvania Ave., N.W., just four blocks from the White House. Property Group Partners acquired it in 2007 for $111.5 million. The 11-story building offers almost 160,000 square feet of space and is fully leased. According to land records, the James Monroe Building’s assessed value is $83.9 million. But Eastdil Managing Director John Kevill told the Washington Business Journal he believes the building could trade for more than its last sale price. He gave several reasons for this: the lack of core office properties on the market now, the building’s location and the fact that it is fully occupied.Photo credits: Property Group Partners Charts courtesy of Marcus & Millichap