TIAA-CREF, Norges Bank Buy Hall of the Americas

One might surmise that not since the start of the Viking Era in the eighth century has a Nordic invasion of this magnitude been seen, though this one uses joint ventures rather than long ships.
Suzan Amato, TIAA-CREF’s head of global real estate strategic joint ventures

Suzan Amato, TIAA-CREF

One might surmise that not since the start of the Viking Era in the eighth century has a Nordic invasion of this magnitude been seen, though this one uses joint ventures rather than long ships.

The JV between TIAA-CREF and Norges Bank Investment Management, manager of the Norwegian Government Pension Fund Global, has acquired its latest asset, the Hall of the States building in Washington, D.C., the buyers announced Friday. The price was not disclosed.

The 609,000-square-foot office building, at 400-444 North Capital St. NW in the Capitol Hill submarket, is directly across from the U.S. Capitol and two blocks from Union Station. The JV is acquiring the land and giving the seller, the MEBA Pension Plan, a 99-year ground lease. TIAA-CREF will own a 50.1 percent interest in the venture, while NBIM will own 49.9 percent.

The property was built in 1976 and is currently 95 percent leased. Amenities include 24-hour security and concierge service, a newly renovated tenant-only exercise facility, a rooftop veranda and entertainment venue, and underground parking.

The building “benefits from a strong demand for space due to a constrained supply of other office buildings in the immediate location of the U.S. Capitol,” Suzan Amato, managing director of managed accounts and strategic joint ventures for TIAA-CREF, said in a release.

The MEBA Pension Plan declined to discuss the transaction with Commercial Property Executive.

The Norwegian Government Pension Fund Global holds total assets of about $860 billion and is, according to the Sovereign Wealth Fund Institute, the world’s largest sovereign wealth fund.

Norges landed on the U.S. CRE scene with a thump in February 2013, taking a 49.9 percent stake in a group of five East Coast office buildings previously owned solely by TIAA-CREF and worth about $1.2 billion.

In December 2013, NBIM formed a JV with MetLife and took a 47.5 percent stake in Boston’s One Financial Center.

In July of this year, that same JV bought the 34-story One Beacon St. in Boston for about $561 million, the venture’s fourth major acquisition in just eight months. The intervening two purchases had been of District Center (formerly the Thurman Arnold Building) in Washington, D.C., and of 425 Market St. in San Francisco, in January.

In September, affiliates of NBIM bought from Boston Properties 45 percent interests in three office buildings, one in Manhattan and two in Boston.

And last month, TIAA-CREF and Norges bought 800 17th St. N.W., in Washington, for a reported $392 million, or a record $1,075 per square foot. <www.cpexecutive.com/property-types/office/tiaa-cref-norges-buy-prime-office-set-in-dc/1004106368.html>