Watergate Office Building Changes Ownership

The buyer of the historic property plans further improvements, which include the addition of a Nixon museum.
The Watergate Office Building
The Watergate Office Building

Rockwood Capital has sold the famous Watergate Office Building in Washington, D.C. Friedman Capital acquired the 215,520-square-foot iconic asset for $101.5 million, according to Curbed Washington D.C.

Newmark Knight Frank represented the seller in the deal. The property last traded in 2016, when Rockwood purchased it from Penzance for $75 million, Yardi Matrix data shows.

The transaction comes neck and neck with another high-profile office building sale in Washington, D.C. Paramount Group has recently sold Liberty Place for more than $150 million and intends to use the proceeds to fund its other ventures.

The historic 11-story building rises at 2600 Virginia Ave., N.W., within the Watergate complex, a 10-acre mixed-use development on the Potomac Riverfront. The property is 1.4 miles west of the White House and 1 mile north of the Lincoln Memorial. The surrounding area, part of the core downtown submarket, hosts numerous hotels, high-end restaurants and luxury residential properties.

A future Nixon museum

The Class A tower was built in 1967 and completely renovated in 2013, per Yardi Matrix data. The $14 million worth of improvements included a new fitness center, secure bike storage and repair station, electric car charging stations and a fully renovated lobby.

The property is currently 90 percent leased, with a tenant roster that includes the National Trust for Historic Preservation and George Washington University. The new owner intends to add various amenities, such as a sports book, urban athletic club, coworking office and restaurants, as well as a Nixon museum.

Newmark Knight Frank’s Executive Managing Directors Jud Ryan and James Cassidy, together with Vice President Cliff Cummings, brokered the deal on behalf of the seller.