www.marejournal.com Real Estate Journal — DelMarVa — April 14 - 27, 2017 — 5A A portion of the consideration to be received by the seller will consist of OP units Washington Reit to acquire 309,000 s/f Watergate 600 office building for $135 million W a sh i ngton , DC — Washing- ton REIT (Wash- ate value for our shareholders through effective repositioning and leasing.” M id A tlantic
Built in 1972 and reno- vated extensively in 1997, the 12-story, 309,387 s/f Wa- tergate 600 is one of the six buildings that comprise the internationally recognized Watergate complex. Wash- ington REIT’s latest acquisi- tion enjoys a prominent site directly across from the Ken- nedy Center for the Perform- ing Arts, with panoramic river views and instant access to In- terstate 66. Metrorail’s Foggy Bottom station is located just about a quarter mile away. “The acquisition of Water- gate 600 exemplifies Wash- ington REIT’s office strategy of acquiring high-quality, ur- ban, metro-centric assets and further increases our footprint within prime locations in the District,” noted McDermott. “Following the company’s val- ue-add success at 1775 Eye Street, which was acquired and renovated in 2014, 600 Watergate provides Wash- ington REIT with another excellent opportunity to cre- Advisors , represented by Eric Berkman of Cushman & Wakefield . “Washington Property Com- pany was attracted to the deep value opportunity of buying a functional and leasable office building at $28 per s/f,” said WPC’s Andrew Eshelman , Washington, DC — Greysteel , a national com- mercial real estate investment services firm, t o d a y a n - nounced the p r omo t i o n of W. Kyle Tangney to managing di- rector. Tang- ney ’ s mos t recent title was senior director. Tangney’s focus is on mul- W. Kyle Tangney
While the building is cur- rently 97 percent leased, Washington REIT will have the opportunity to lease 90,000 s/f when Blank Rome’s lease expires at the end of the 2018. With the recent $125 mil- lion repositioning and 2016 re-opening of the Watergate Hotel, the Watergate complex is experiencing renewed inter- est from both office and retail tenants. Based on this interest, Washington REIT plans to refine and complete the sig- nificant renovations underway including a lobby expansion and upgrade, major systems upgrades, and expansion of the building’s existing restaurant space to meet demand from Kennedy Center patrons. The new ownership also plans to add a state-of-the-art fitness facility and conference center, while expanding and upgrad- ing the rooftop space. n principal-acquisitions. “The property’s underlying zoning allows for future redevelop- ment as residential or retail space.” Eshelman added that WPC is currently seeking oth- er opportunistic acquisitions across the Washington, DC metropolitan area. n tifamily property transactions, particularly within the greater Washington, D.C. region. Mr. Tangney works with clients across the investment spec- trum, from private clients and middle market companies all the way up to institutional powerhouses. Tangney leads the Washington, D.C. team of investment sales professionals and is responsible for business development, marketing strat- egy, and start-to-finish deal execution. n
ington Real Estate In- vestment Trust has signed a contract to acquire 600 New Hampshire Ave., NW, a 309,000 s/f class A office building on the Potomac riv- erfront in Washington, DC, for $135 million ($437 per s/f). Watergate 600, as it is known, is being sold by Kath- erine Bradley and David Bradley, who also control Atlantic Media . Atlantic Me- dia occupies close to half of Watergate 600 (140,000 s/f) under a long-term lease. The Bradleys said: “After a dozen years as owners of Watergate 600 and as anchor tenants through Atlantic Media, we are delighted that the build- ing will become part of Wash- ington REIT. Their vision is consistent with ours, both for the iconic building and for the renewal of the surrounding complex. Washington REIT will be an excellent steward Bethesda, MD — Wash- ington Property Company (WPC) of Bethesda has ac- quired two office buildings in the Maryland and Virginia suburbs of Washington, DC for a total of $7.96 million. These acquisitions, one in Montgom- ery County, MD and the other in Fairfax County, VA repre- sent deep-value opportunities from motivated sellers. Computer Science Corpora- tion (CSC) sold WPC a 116,000 s/f office building located at 3160 Fairview Park Blvd. just off I-495 in Fairfax County, VA, for $7.150 million. The build- ing, situated just off I-495 in one of the area’s preeminent office parks, was constructed in 1987 as CSC’s headquarters. James Molloy of JLL repre- sented the seller in the trans- action. “At $62 per s/f, this fully functional office building rep- resents a great opportunity
600 New Hampshire Ave., NW
for a unique and treasured asset.” A portion of the consider- ation to be received by the seller will consist of operating partnership units (OP units). “By partially structuring this acquisition as an OP unit transaction, we were able to execute a transaction that was mutually beneficial to both parties,” said Paul Mc-
Dermott , president and CEO of Washington REIT. “The structure allowed us to create an efficient execution for a private owner of real estate in the Washington metropolitan area. Under a similar struc- ture, we expect to generate opportunities to acquire addi- tional properties and portfolios from longtime private-sector property owners.”
Washington Property Co. acquires two suburban office buildings for $8 million in MD & VA from Cornerstone
Greysteel promotes W. Kyle Tangney to managing director
3160 Fairview Park Blvd.
for repositioning as a head- quarters location,” said WPC’s Andrew Eshelman , princi- pal-acquisitions. “We plan to gut all systems and renovate the building, then re-lease it speculatively to tenants seek- ing renovated class A space at the lowest class A rental rates.” On the other side of the
Potomac, WPC has acquired 12125 Veirs Mill Rd., a 28,000 SF office building located at the highly-trafficked intersec- tion of Randolph Rd. and Veirs Mill Rd. inWheaton/Glenmont. Built in 1978 and currently 50% occupied, the property was acquired for $815,000 from Cornerstone Realty
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