Principal Takes NoMa Office Building for $149.5M; Kelley Drye Extends Lease in Georgetown
- Jul 27, 2011
Underscoring the continued strength of the capital’s office investment market, Capitol Plaza has traded to Principal Real Estate Investors L.L.C for $149.5 million, the property’s sellers, a joint venture of AREA Property partners L.P. and Van Ness Property Group, disclosed on Tuesday. The price reflects a considerable upside; according to a report from Bloomberg, AREA and Van Ness bought the then-vacant 291,838-square-foot Class A property in 2007 for $94.5 million. Today Capitol Plaza is nearly 98 percent leased to such tenants as the U.S. Department of Homeland Security, the Internal Revenue Service and Washington, D.C.’s public school district. In addition to robust occupancy, the property’s location in the up-and-coming NoMa district proved to have considerable appeal. In a statement, Principal managing director Jim Halliwell called Capitol Plaza “one of the preeminent office properties in a growing submarket with limited Class A office product.”
On the leasing front, Kelley Drye & Warren LLP has extended its existing 107,000-square-foot lease at Washington Harbour, a two-building, 532,000-square-foot complex on the Potomac River in Georgetown, the Washington Business Journal reported. Originally scheduled to roll in 2017, the law firm’s lease now runs through 2025. Washington Harbor’s owners, Rockpoint Group L.L.C. and MRP Realty, acquired the property from Prudential Real Estate Investors in June 2010 for a reported $245 million.
The multi-family development pipeline for the District’s popular Adams Morgan neighborhood has a new addition. Federal Capital Partners has acquired a development site located in the District’s Adams Morgan neighborhood, the company revealed this week. Federal Capital and its joint venture partner, Altus Realty Partners, expect to begin construction of approximately 40 residential units in early 2012. Andrew McAllister, Bruce Levin and Andrew Stegmaier of MAC Realty Advisors along with Scott Frankel of CB Richard Ellis arranged the transaction.