Private Seller Parts with 101,000SF D.C. Office
- Sep 12, 2008
Ownership of the Class B office building at 666 Eleventh Street NW in Washington, D.C.’s East End submarket has changed hands. Relying on the assistance of real estate services firm West, Lane & Schlager, Leonard Doggett of Doggett Enterprises Inc., the parent company of Doggett Parking Co., sold the 101,000-square-foot property, which was developed by Doggett over 40 years ago. The buyer has not been publicly identified, but snapping up 666 Eleventh was a momentous move, as the building was one of the limited group of individually owned office properties in the still highly coveted Downtown Washington, D.C., market. Occupying a corner parcel about four blocks from the White House and the Verizon Center sports and entertainment arena on either side, 666 Eleventh holds the distinction of being one of a few boutique corner office properties within less than a five-minute jaunt of five Metro lines. The building has a tenant roster that includes businesses ranging from law firms and such notable entities as the Fulbright Association. As per West Lane, marketing of the building brought out a bevy of hopeful investors, which, despite the city’s ranking as one of the top office markets in the United States, is no small feat considering the current lending climate. “We have definitely seen investment sales decrease quite a bit, particularly this quarter,” Tony Ginter, director of research and marketing for real estate services firm GVA Advantis, told CPN. “They picked up in the second quarter with a couple of trophy property sales, but we’ve seen fewer sales in the third quarter.” The slowdown of investment activity notwithstanding, the price tags have been holding steady over the last few quarters. “A year or so ago we saw sales close to $800 per square foot,” she said. “We’re definitely not seeing those prices now, but we are seeing sales at $450 to $500 per square foot for some Class A buildings.” During the second quarter, the 170,700-square-foot building at 1330 L Street sold for $462.79 per square foot, and the 328,200-square-foot property at 1030 15th Street fetched $552.07 per square foot. For 666 Eleventh Street, however, the numbers for the sales of the two aforementioned new Class A buildings provide only an obscure point of reference, as 666 Eleventh can be best described as a quality asset–not a Class A property. According to the District’s real estate records, the proposed 2009 assessed value of 666 Eleventh is approximately $30 million; a figure that, in spite of the credit crunch-inspired discrepancy between buyers’ and sellers’ values of commercial real estate, is certainly far less than the property’s sale price.