News

300,000-SF Building Brings in the Big Bucks

WASHINGTON, DC-With a stable supply of properties commanding well over $300 per-sf these days, the District continues to lead the nation's office market, and a recent transaction involving the disposition of the approximately 300,000-sf building at 2100 M St. just adds to the city's status. Just three years after having acquired the class A property for $56.6 million, the Bernstein Cos. and LMH Realty have sold the building for $95 million, or $318 per sf, and walked away with a profit that would induce the envy of any office real estate magnate. Acting on behalf of the joint venture, real estate services firm Cassidy & Pinkard orchestrated the sale to US Property Fund III Gmbtt & Co. KG.

The eight-story tower at 2100 M St.--which sits in the District's East End, between the Dupont Circle and Foggy Bottom areas--has much more to offer in the way of assets than its prime location on a corner lot in the city's central business district. Developed in 1969 by the Charles E. Smith Cos., 2100 M St. has undergone a series of renovations that have gradually left it with its present designation as a premiere office property. The structure features about 291,500 sf of leasable office space, 7,000 sf of storage area, and a two and one-half level subterranean parking facility that can accommodate up to 225 vehicles. In addition, at a current occupancy level of 96%, 2100 M St. is nearly fully leased to a diverse set of tenants under mostly long-term leases. The tenant roster includes the Urban Institute in a 150,000-sf space, and George Washington University, which keeps a 42,500-sf space.

Speaking to GlobeSt.com, the Bernstein Cos. Adam Bernstein explains why the timing was right to exchange the property for a profit. "We owned the building for three years, we renewed a major tenant, the Urban Institute, we did minor renovations on the lobby and first floor, and the market allowed us to sell at a number that is extremely attractive." The Urban Institute committed to staying in its space, which accounts for nearly 46% of the structure, until May 2014.


Source: GlobeSt
Author: Barbra Murray