By Corina Stef
After the disposition of Keystone Office Park in Durham, N.C., American Real Estate Partners (AREP) acquired a 192,000-square-foot office building in Washington, D.C.’s NoMad submarket. The purchase was made through the company’s Strategic Office Fund II LP in a joint venture with one of its institutional investors. According to public records, the property traded for $64.2 million and the sale was backed by a $31.4 million loan funded by Two Harbors Investment.
The nine-story asset is located at 810 First St. NE and boasts an efficient center-core design. The owners plan to reposition it into creative office space and upon the District of Columbia Government’s lease expiration in October 2018, it will become the only vacant building in the area. Planned upgrades include a fitness center, break areas, meeting facilities and outdoor amenities, in addition to a complete rebranding.
The property is one block away from the Union Station transit hub, the second busiest station in Washington, D.C., which comprises 322,000 square feet of retail space. Other nearby amenities include restaurants, retailers, hotels, entertainment options and government services.
Newmark Knight Frank Executive Managing Directors James Cassidy and Jud Ryan represented the seller, American Realty Advisors, in the transaction. A Newmark Knight Frank team comprising Chairman of Asset Services Brendan Owen, Associate Director Rafael Notario and Associate Morgan Monroe will handle the leasing services for the property. The marketing efforts will be led by Regional D.C. Marketing Director Alicia Karr.
The property previously traded in 2001 for $34 million.
Image courtesy of Yardi Matrix