Suburban Washington, D.C., Office Building Fetches $205M
- May 12, 2011
May 11, 2011
By Barbra Murray, Contributing Editor
Beacon Capital Partners L.L.C. has sold 1300 N. 17th St., a 377,700-square-foot office building in Arlington, Va., to an affiliate of Tishman Speyer. Beacon walked away with $205 million for the suburban Washington, D.C., asset.
The price tag on the 31-year-old property was notably higher than the nearly $177.5 million sticker attached to it when Beacon came into possession of the asset as part of a 5.3 million square-foot portfolio purchase from the Blackstone Group in 2007. A 19-story structure, 1300 N. 17th sits in Arlington’s Rosslyn submarket, just minutes from Washington, D.C., the Pentagon and Reagan National Airport via nearby thoroughfares and the Metro. Among the names on the building’s tenant roster is anchor BAE Systems.
Commercial real estate services firm Cassidy Turley marketed 1300 N. 17th on behalf of Beacon and had no trouble attracting eager investors. “There was a lot of interest in the property itself, but also its location in the Rosslyn-Ballston Corridor, where rental rates have been increasing rapidly,” Bill Collins, senior managing director with Cassidy Turley, told CPE. Rental rates across Arlington are expected to continue to rise, according to a first quarter Cassidy Turley report, having gone from $39.09 per square foot in the fourth quarter of 2010 to $39.47 per square-foot in the first quarter of 2011. “It’s a terrific property in an improving market and there’s an opportunity to move leases up and do repositioning of the asset.”