Kaiser Permanente Sells DC-Area Headquarters
The property traded at a considerable discount.
Kaiser Permanente has sold its regional headquarters, a 222,462-square-foot office building in North Bethesda, Md., to Lindsay Automotive Group, Washington Business Journal reported. The buyer paid $10.3 million for the asset and plans to relocate its Wheaton Ford dealership at the property, the same source shows.
JLL Capital Markets represented the seller and procured the buyer.
Located at 2101 E. Jefferson St. on 4 acres, the building had been vacant since January, when Kaiser Permanente moved its headquarters to Hyattsville, Md., according to Washington Business Journal.
The property has access to Interstate 270, U.S. Highway 355 and to multiple bus and subway stations. Bethesda, Md. is 6 miles away, downtown Washington, D.C. is 13 miles away and Ronald Reagan Washington National Airport is within 18 miles of the property.
READ ALSO: Step Into My Office: ‘Wait and See’ for DC?
Completed in 1985, the building was used by Kaiser Foundation Health Plan of the Mid-Atlantic States Inc. since 1992, when it was acquired for approximately $20.4 million, according to CommercialEdge. The seven-story building features 31,781-square-foot floorplates, seven passenger elevators and 235 vehicle parking spots.
Senior Managing Directors Jim Meisel and Andrew Weir, together with Senior Director Dave Baker and Director Kevin Byrd with JLL Capital Markets negotiated on behalf of the seller.
D.C. emerges as top performer in office deals
Despite the rise of discount deals in the sector, Washington, D.C.’s total office sales volume ranked second nationwide as of April, according to a recent CommercialEdge report. The metro emerged as a top performed in office deals, with $1.3 billion in sales, after Manhattan’s approximately $2.6 billion. Assets traded at an average of $252 per square foot, surpassing Austin for the first time in months and ranking among the top 10 priciest office markets.
Some notable deals closed in the metro since the start of the year include Nuveen Real Estate’s $118 million sale of an office building at 1401 H St. NW. Tourmaline Capital Partners picked up the property after Nuveen put it on the market for nearly two years. The sale price is more than half of what Nuveen initially paid for the asset.
Another discount deal in the metro was Rockwood Capital’s $153 million acquisition of the Victor Building, a 1909-vintage property totaling 316,000 square feet. Brookfield Properties sold the nine-story asset after owning it since 2005, when the company purchased the asset at a slightly higher price.
You must be logged in to post a comment.