July 16, 2001
Bernstein Buys 9-story K Street Office Building
Source: The Washington Times
The Bernstein Cos., the D.C.-based real estate investment and development group, has picked up the nine-story office building at 1990 K St, NW for $56 million.
A private partnership sold the property. Local brokerage Cushman & Wakefield helped arrange the deal.
The 269,000-square foot building has 60,000 square feet of retail space and a 255-space parking garage. Tenants include the U.S. Department of Education, the American Institute for Research and the law firm of Cahill, Gordon, Reindel.
Adam Bernstein, president of the Bernstein Cos., says the building's K Street address makes it valuable.
"This block...has experienced a renaissance over the last few years, with new buildings next door and across the street," he says.
The new landlord wants to "reposition" the building's two-level retain plaza, which is known as the Esplanade Mall. The plaza is now home to a CVS drug store and the Tequila Grill restaurant.
Bernstein financed the deal through its $100 million Consortium Capital equity fund, a series of funds assembled to buy, renovate and develop commercial real estate buildings in the mid-Atlantic.
The group started its first Consortium Capital fund in late 1997, placing $30 million of equity in joint ventures and other real estate acquisitions. That fund is fully invested in eight projects in the Washington area.
Bernstein recently started a second fund, valued at $100 million. The second fund has invested in several projects, including a 300,000-square-foot office building at 2100 M St. NW and an undeveloped parcel at Massachusetts Avenue and Fifth Street, NW that is zoned for 440,000 square feet of housing.