By Adrian Maties, Associate Editor
Vornado Realty Trust announced last week that it will acquire full ownership of 1399 New York Ave., N.W., for $104 million. The New York-based real estate investment trust previously held a 2.5 percent minority stake in the building.
Known as the Executive Tower, the property is an 11-story, 130,000-square-foot Class A office building. It is located close to the Treasury Department and the White House, just one block from McPherson Square Metro and two blocks from Metro Center, in the Washington CBD East End Submarket. Executive Tower is home to numerous high-end tenants and enjoys some of highest rental rates in Washington, D.C.
The skyscraper was completed in 2001 and rises to 153 feet. It offers a glass-enclosed private fitness facility just off the lobby, a private parking garage and a partially covered rooftop terrace. Hellmuth, Obata & Kassabaum was the architect and DRI Partners developed the building. It was named Best New Urban Office Building in the Washington Business Journal’s 2001 Best Real Estate Deals.
New York-based Real Estate Capital Partners was the seller. Vornado paid roughly $800 per square foot for the remaining 97.5 percent of the building. The purchase is subject to customary closing conditions. Vornado expects to close the deal by the end of the year.
Vornado is a fully integrated real estate investment trust, one of the largest owners and managers of commercial real estate in the United States, with a portfolio of more than 100 million square feet, primarily located in the New York City and Washington, D.C., metropolitan areas. Vornado/Charles E. Smith is the Washington division of Vornado Realty Trust and the largest owner/manager of commercial properties in the Washington, D.C., region. It owns and manages 74 office properties containing 18 million square feet and seven residential properties containing 2,424 units.