A Better Buy in Bethesda?
- Jun 08, 2015
AEW Capital Management has sold the Bethesda Office Center, a 174,449-square-foot, Class A office building in downtown Bethesda for $63.5 million to an undisclosed buyer.
Holliday Fenoglio Fowler, L.P. represented the seller in the transaction. The buyer was assisted by HFF in securing the fixed-rate acquisition loan through JP Morgan Chase Bank, National Association.
“This offering represented an exceptional opportunity to acquire a value-add, institutional quality, Class A office building in a highly sought after submarket,” Jim Meisel, HFF”s senior managing director, said in a company statement. “We anticipate continued rental rate growth and increased leasing activity in Bethesda, which has historically been one of Washington, D.C.’s strongest and most stable markets.”
Located at 4520 East-West Highway at Waverly Street, the building, originally built in 1970, consists of 173,000 square feet, with 88,183 square feet of rentable space.
The property sits just one block from the Bethesda Metrorail Station and is within close proximity to Woodmont Triangle’s numerous restaurants and the retail offerings at Bethesda Row.
According to Scheer Partners’ Bethesda Office Market Report for 2015 Q1, office rental rates in the area are expected to stabilize throughout 2015, with forecasts that it should rise by the fourth quarter. The report notes that now is a good time to think about re-negotiating a lease or relocating.
The HFF investment sales team also included senior managing directors Dek Potts, Andrew Weir and Stephen Conley as well as associate director Matthew Nicholson and senior real estate analyst Robert Jenkins.