Two More D.C.-Area Office Properties Change Hands
- Jan 27, 2014
Office properties in the Washington, D.C., area continue to attract interest from investors. Last week, I wrote about the acquisition of the Thurman Arnold Building by a MetLife Inc. and Norges Bank Investment Management joint venture, in the first major commercial real estate sale of the year. Two more office buildings have since changed hands.
Cassidy Turley arranged the sale of 2000 K St., N.W., in the heart of Washington, D.C.’s Central Business District, on behalf of 2000 K Street LLC. The Class A office building offers 153,212 square feet of space in an exceptional location, close to the area’s important amenities, and features a tenant-only fitness center, a full-service concierge and a newly renovated rooftop terrace.
Bill Collins, Paul Collins, Jud Ryan, Drew Flood and James Cassidy of Cassidy Turley represented the seller in the transaction. “This remarkably well-located asset generated a record level of investor interest,” Jud Ryan, executive managing director, said in a statement for the press. “The sale of 2000 K St. is encouraging for the market, as buyers were willing to aggressively underwrite and apply significant value to the property’s current vacancy and pending rollover.” According to Cassidy Turley, the property was 79 percent leased at the time of the sale. The price of the transaction was not disclosed.
CBRE arranged the sale of the second property, a prime GSA-leased office building in Lorton, Va., occupied by the Drug Enforcement Administration. Chicago-based Titanium Real Estate Advisors paid $24 million for the building. CBRE’s Marc Rampulla, Randall Heilig, Marcy Owens Test and Edward Welbourne represented the seller.
The property is located at 10555 Furnace Road, in the Gunston Commerce Center, right at the heart of a Defense-oriented corridor anchored by the Pentagon, Fort Belvoir, Marine Corps Base Quantico, as well as numerous defense contractors. It was completed in 2000 and was custom built to house the DEA’s Office of Investigative Technology. The 90,167-square-foot Class A office building includes laboratory and secure warehouse spaces, forensic and computer training facilities, radio frequency-shielded enclosures and fiber connectivity.
“This rare GSA investment opportunity is regarded as one of the highest-quality office assets in the Springfield/Newington submarket. With a DEA lease extending through 2020, plus a five-year renewal option, the property offers stable cash flow and a strong tenant renewal story. Strategically located in Gunston Commerce Center and surrounded by many government agencies and contractors, 10555 Furnace Road is a premier investment in the Washington, D.C., metro region,” said CBRE First Vice President Marc Rampulla in a statement for the press.
CBRE reports that 595,000 square feet of Class A office space were absorbed in 2013 in the Greater Washington, D.C., area, as well as 65,000 square feet of trophy space. Tenant interest remained strong and demand for high-end Class A and trophy space continued to increase despite the 16-day government shutdown.
Photo credits: CBRE