Regions Midatlantic
May 2, 2008
By: Barbra Murray, Contributin Correspondent
A 152,500-square-foot office building in Washington, D.C., has come under new ownership, courtesy of a transaction valued at $76 million. Sumitomo Corp. of America took the fully-leased debt-free property off the hands of The Bernstein Cos.
A 12-story structure with 8,500 square feet of ground level retail, 1750 K was originally developed in 1970 and sits in the city's central business district about three blocks from the White House. Law firm Wiley Rein L.P. heads the six-business tenant roster, occupying nearly 132,400 square feet under a lease that expires at the close of June 2014. With the closing of the deal, Bernstein walked away with quite a tidy profit, having acquired the property from the St. Joe Co. four years ago for $47.3 million.
A bevy of eager investors expressed interest in acquiring 1750 K, according to real estate services firm Holliday Fenoglio Fowler L.P., which represented Bernstein. "1750 K is a pretty good address," HFF senior managing director Stephen "Dek" Potts told CPN today; Potts was joined by colleagues James Meisel and Andrew Pulliam on the deal. "Everybody keeps saying that the market's in the tank, but that's just not true. Good things can happen when you have a good building. This property was in an A+ location in an A+ submarket. The building is not Class A, but Class B+, and it has a great tenant roster."
Based in Washington, D.C., the Bernstein Cos. is a 75-year-old private real estate firm that owns, manages, acquires and develops a variety of commercial and residential properties, with a focus on office and hotel assets. Sumitomo Corp. of America is a subsidiary of Tokyo-based Sumitomo Corp. and has invested in premier office buildings in such locales as Manhattan, Los Angeles, Phoenix and San Francisco since 1982.
By: Barbra Murray, Contributin Correspondent
A 152,500-square-foot office building in Washington, D.C., has come under new ownership, courtesy of a transaction valued at $76 million. Sumitomo Corp. of America took the fully-leased debt-free property off the hands of The Bernstein Cos.A 12-story structure with 8,500 square feet of ground level retail, 1750 K was originally developed in 1970 and sits in the city's central business district about three blocks from the White House. Law firm Wiley Rein L.P. heads the six-business tenant roster, occupying nearly 132,400 square feet under a lease that expires at the close of June 2014. With the closing of the deal, Bernstein walked away with quite a tidy profit, having acquired the property from the St. Joe Co. four years ago for $47.3 million.
A bevy of eager investors expressed interest in acquiring 1750 K, according to real estate services firm Holliday Fenoglio Fowler L.P., which represented Bernstein. "1750 K is a pretty good address," HFF senior managing director Stephen "Dek" Potts told CPN today; Potts was joined by colleagues James Meisel and Andrew Pulliam on the deal. "Everybody keeps saying that the market's in the tank, but that's just not true. Good things can happen when you have a good building. This property was in an A+ location in an A+ submarket. The building is not Class A, but Class B+, and it has a great tenant roster."
Based in Washington, D.C., the Bernstein Cos. is a 75-year-old private real estate firm that owns, manages, acquires and develops a variety of commercial and residential properties, with a focus on office and hotel assets. Sumitomo Corp. of America is a subsidiary of Tokyo-based Sumitomo Corp. and has invested in premier office buildings in such locales as Manhattan, Los Angeles, Phoenix and San Francisco since 1982.
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