By Barbra Murray
Akridge and Stars REI have added a new asset to their holdings with the acquisition of an office building at 1025 Vermont Ave., N.W. in Washington, D.C., from Carr Properties. The partners have not disclosed the financial details of the purchase; however, according to the D.C. Recorder of Deeds, the 116,000-square-foot property traded for $48.5 million.
1025 Vermont, which last sold in 2006 for $34.1 million, is located in the central business district in the East End submarket. The 12-story tower welcomed its first tenants in 1963 and most recently underwent renovations in 2013.
The 1025 Vermont transaction marks Akridge and Santiago, Chile-based Stars’ second joint venture endeavor. The companies teamed on the redevelopment of a property at 1101 16th St., N.W. into a trophy office destination. “Our investment in Washington, DC is a testament to the success of 1101 Sixteenth and the strength of the DC market,” Mike Gill, senior vice president with Akridge, said in a prepared statement.
A team from Cushman & Wakefield that included Bill Collins, Paul Collins, Drew Flood, Eric Berkman, Shaun Weinberg and Ben Mann represented Carr in the transaction.
The D.C. office market’s longstanding status as a favorite for cross-border investment shows no signs of waning. According to a third quarter 2018 report by commercial real estate services firm Newmark Knight Frank, “Foreign investors continue to show strong interest in the region despite trade tension and interest rate hikes, as consistent job growth in Washington’s office-using sectors continues to generate demand for office space and attract investors, who have ample capital waiting to be placed.”
At the close of the third quarter, foreign buyers accounted for 47 percent of 2018’s office transactions in the District. For Stars, the 1025 Vermont transaction gives the company its second office asset in the city.
Image courtesy of Akridge