New York real estate investment firm Steinbridge Group and Dallas-based Lincoln Property Co. have bought Washington, D.C.’s infamous Watergate office building, reported Bloomberg. The 12-story building, otherwise known as Watergate East, is being sold for $107 million.
Below, read some of the details released by Bloomberg:
The seller is a partnership led by Greenfield Partners LLC, a Westport, Connecticut-based real estate investment-management firm, said a person with knowledge of the transaction, who asked not to be named because the details are private. Washington-based Penzance Cos., said to be part of the partnership, paid $76 million for it in November 2011, data from Real Capital Analytics Inc. show. That sale resolved a "troubled situation," according to Real Capital, in which the property was controlled by a creditor after owner BentleyForbes fell into debt following the 2008 financial crisis.
Currently, there are 205,000 square feet of offices in the building with 14 percent of it vacant. According to Bloomberg, asking rents are roughly $47 per square foot. The building is located at 2500 and 2600 Virginia Avenue NW and spans 270,000 square feet. It is part of a six-building multi-use complex with co-ops, condos, and a hotel.
Lincoln Property currently manages 29 million square feet in the D.C. area, while Steinbridge has manages and leases over $12 billion of institutional capital in the world.