By Mihaela Coste
Washington, D.C.—The Meridian Group recently announced that it has acquired an eight-story, 132,372-square-foot office building in the central business district of Washington. 1901 L Street NW was bought off market from New York Life for $75 million.
Meridian plans major renovations, including three new floors, a new lobby, a new façade, new HVAC and elevator systems as well as an exclusive tenant-only indoor-outdoor penthouse space, fitness center and a conference center. Fox Architects will lead the revamp, and upon completion, the size of the asset will increase to 206,000 square feet.
Located at 1901 L Street on a 0.4-acre site at the northeast corner of 19th Street, the asset is easily accessible by car or four different metro lines, being within walking distance of the Farragut North and Farragut West Metro stations.
“With its exceptional corner location in the heart of the CBD, this acquisition has tremendous potential to add value,” said Gary Block, chief investment officer of Meridian, in a prepared statement. “It is an outstanding opportunity to reposition and renovate this building into a trophy asset.”
According to Yardi Matrix data, the 1901 L Street NW originally built in 1978 features standard and high ceilings, subterranean parking spaces and an office load factor of 15 percent. The asset last traded in 2005 for $51.5 million.
The property is currently 73 percent occupied, the tenant roster including retailers such as Staples and Sweetgreen on the first floor and a mix of 15 office tenants.
“We expect considerable interest from tenants as 1901 L Street is transformed by the renovation,” added Bruce Lane, executive vice president & managing director of Meridian. “Leasing brokers consider this one of the best intersections in downtown DC.”
Image courtesy of Yardi Matrix