Here is a handy lesson in how to successfully flip a property: get a tax abatement first, then sell the property for more than twice what you originally paid. It helps if you have a team of a thousand people who know how to crunch real estate numbers, as is the case with CoStar Group. The research firm proudly announced the sale, and sixty million dollar profit, of its L street headquarters to a German company, which it will continue to lease from over the long term. So why the outrage? Well, if the initial $6.1 million tax abatement wasn't enough, the company thinks they will qualify for further benefits, such as a five year elimination of DC corporate income tax. There is a silver lining, but you'll need to get your magnifying glass out to find it. CoStar is billing this sale as a sign that the market has hit bottom and is now starting to turn around. File Photo from WBJ.
· That's One Tidy Profit [DCIST]
· CoStar To Make $60M [WaPo]
· CoStar's $60M Flip [WBJ]