Paramount Exits DC Area With $103M Sale
- Dec 31, 2020
Paramount Group has completed the sale of 1899 Pennsylvania Avenue in Washington, D.C., a 190,955-square-foot Class A office property, for $103 million.
The transaction, which marks Paramount’s exit from the D.C. market, brought a $12 million discount from the previously announced price, first reported in early March. According to Paramount, the price reduction was spurred by the ongoing COVID-19 pandemic. The property last traded in 2010, when the current seller acquired it from KanAm Grund for $151.1 million.
The current buyer is 1899 Penn Property LLC, an entity registered to an affiliate of Global Securitization Services LLC, which owns and manages special-purpose entities on behalf of its clients, according to the Washington Business Journal. The publication also reported that the new ownership group encompasses several companies, including MRP Realty, Sterling Bay and Declaration Partners.
Located roughly halfway between the White House and Washington Circle, the central D.C. property was originally constructed in 1917 and completely redeveloped in 2002. The 11-story building’s tenant roster includes Newmark, Design + Construction Strategies and Bright Horizons, CommercialEdge data shows.