Paramount Strikes Record Deal to Sell NoVa Trophy Building
- Feb 03, 2017
By Veronica Grecu
Arlington, Va.—A new owner has emerged for Waterview, a 647,000-square-foot office building located in the Rosslyn section of Arlington, Northern Virginia.
New York City-based Paramount Group has sold the Class A office tower to Morgan Stanley Real Estate for a staggering $460 million. The deal represents the largest single office sale in the area since 2007, when Paramount acquired the same property. According to Real Estate Alert, Eastdill Secured negotiated the transaction on behalf of the seller.
The sale will result in a financial statement gain of approximately $110 million and a tax gain of approximately $393 million, which will be deferred as part of a like-kind exchange for the upcoming acquisition of One Front Street, a 38-story office high-rise in San Francisco. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2017.
“By recycling the capital from this stabilized asset into our recent, more accretive, One Front Street acquisition, we believe shareholders will benefit from our team’s ability to add value by capitalizing on expiring leases that are 20 percent below market,” Albert Behler, chairman, CEO & president, said in prepared remarks.
Located at 1919 N Lynn St. near the Francis Scott Key Bridge to Washington and the Rosslyn Metrorail station, the Pei Cobb-designed office tower was completed in 2008 as part of a mixed-use complex comprising a high-end Le Meridien Hotel, a residential building and a parking garage. Waterview is currently 99 percent leased to a single tenant whose lease expires in January 2028.
Image courtesy of Paramount Group