IRS Claims 105,000 SF at D.C. Complex
- Feb 15, 2011
February 15, 2011
By Barbra Murray, Contributing Editor
It’s not April 15 yet, but the Internal Revenue Service has filed — papers for a new office lease, that is. Acting on the agency’s behalf, the U.S. General Services Administration entered into a lease agreement with property owner CIM Group to occupy 105,000 square feet at the Union Square office complex in Washington, D.C.
Located near Union Station and its adjacent subway station, Amtrak and commuter rail services in the District’s NoMa submarket, Union Square consists of two nine-story buildings encompassing approximately 300,000 square feet each and carrying the addresses of 899 and 999 N. Capitol. The structures, originally developed between 1969 and 1973, have undergone upgrades over the years, including a recently completed renovation program at the hands of CIM, which acquired the two buildings and an adjacent entitled land parcel from JP Morgan Investment Management for $262 million in 2007.
If local government counts, the IRS will not be the only new government name on the tenant roster at Union Square. In June 2010, the District of Columbia Department of Health committed to 150,000 square feet at 899 N. Capitol. Outside of Union Square, the IRS will have plenty of federal brethren in the area. As noted in commercial real estate services firm Cushman & Wakefield Inc.’s fourth-quarter report, “The GSA maintain a firm presence in Capitol Hill/NoMa, with the government attributed to 66 percent of all leasing activity, over 500,000 square feet in 2010.”
CIM relied on real state firms Akridge and Cushman & Wakefield for representation in the 10-year lease transaction, while Jones Lang LaSalle stood in for the IRS. Presently located at 1750 Pennsylvania Ave., the IRS will relocate from its current digs to Union Square in January 2012.