{"id":1004290676,"date":"2019-01-10T01:16:51","date_gmt":"2019-01-10T09:16:51","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004290676"},"modified":"2019-01-15T10:56:51","modified_gmt":"2019-01-15T18:56:51","slug":"dcs-warner-building-gets-a-new-owner","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/dcs-warner-building-gets-a-new-owner\/","title":{"rendered":"DC\u2019s Warner Center Commands $377M"},"content":{"rendered":"<div id=\"attachment_1004290679\" style=\"width: 310px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/1299-Pennsylvania-Ave..jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004290679\" data-attachment-id=\"1004290679\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/dcs-warner-building-gets-a-new-owner\/1299-pennsylvania-ave\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/1299-Pennsylvania-Ave..jpg\" data-orig-size=\"800,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"1299 Pennsylvania Ave.\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;1299 Pennsylvania Ave.&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/1299-Pennsylvania-Ave..jpg?w=800\" class=\"wp-image-1004290679 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/1299-Pennsylvania-Ave..jpg\" alt=\"1299 Pennsylvania Ave.\" width=\"300\" height=\"233\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/1299-Pennsylvania-Ave..jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/1299-Pennsylvania-Ave..jpg?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/1299-Pennsylvania-Ave..jpg?resize=768,595 768w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-1004290679\" class=\"wp-caption-text\">1299 Pennsylvania Ave.<\/p><\/div>\n<p>JBG Smith continues its selling spree with its latest D.C.-area disposition\u2014The Warner Building, a 583,453-square-foot, Class A office building at 1299 Pennsylvania Ave. NW. The firm, the largest developer and pure-play Washington, D.C., real estate company, sold the building to CBRE Global Investors for $376.5 million.<\/p>\n<p>Collins Ege, Nicholas Pappas and Sean McDermott of Eastdil Secured represented JBG Smith in the transaction.<\/p>\n<p>The 13-story building, which includes the historic Warner Theatre on the ground floor, was part of Vornado Realty Trust\u2019s D.C.-area holdings prior to July 2017, when JBG Smith was <a href=\"https:\/\/www.commercialsearch.com\/news\/vornado-completes-dc-spin-off-jbg-smith-begins-trading\/\">created through a spin-off and merger.<\/a> The combined company now has an operating portfolio of about 19 million square feet and a development pipeline with roughly 18.3 million square feet.<\/p>\n<p><em>\u201cWith the sale of The Warner Building we have closed over $760 million of asset sales and recapitalization, the proceeds of which will be used to deleverage our balance sheet and create capacity for future investment opportunities,\u201d<\/em> Matt Kelly, JBG Smith CEO, said in a prepared statement. <em>\u201cWe plan to continue to capitalize on the current environment to raise attractively priced capital.\u201d<\/em><\/p>\n<p>In November, a joint venture between JBG Smith and WealthCap sold a two-building, 229,905-square-foot <a href=\"https:\/\/www.commercialsearch.com\/news\/jv-sells-pair-of-dc-area-research-facilities\/\">office and lab portfolio in Rockville, Md<\/a>., occupied by the National Institutes of Health. A month earlier, JBG Smith <a href=\"https:\/\/www.commercialsearch.com\/news\/greenoak-jv-pounces-on-the-lion-building\/\">sold the Lion Building<\/a> a 157,000-square-foot office building in Washington, D.C., for $65 million. In September, the firm <a href=\"https:\/\/www.commercialsearch.com\/news\/exan-capital-snags-121m-dc-office-tower\/\">sold Executive Tower,<\/a> a 130,000-square-foot office building in D.C., for $121 million.<\/p>\n<p>JBG Smith was among the big winners in November when Amazon announced it would be locating one of its <a href=\"https:\/\/www.commercialsearch.com\/news\/its-official-amazon-announces-hq2-winners\/\">new HQ2 locations at Crystal City<\/a> in Arlington, Va., where the REIT is the submarket\u2019s biggest owner. JBG Smith will be providing 500,000 square feet of space at three existing properties to Amazon and 4.1 million in new development.<\/p>\n<h2>\u2018Strategic\u2019 acquisition<\/h2>\n<p>Robert Perry, head of CBRE Global Investors\u2019 Strategic Partners U.S. Value 8 fund, said the value-add fund acquired 100 percent ownership of the Warner Building. JBG Smith had a 55 percent ownership interest in the building, which is about 98 percent leased. The remainder was owned in partnership with a Canadian pension fund.<\/p>\n<p><em>\u201cWe focus on high-quality assets in prime locations and of, course, this fits both of those characteristics,\u201d<\/em> Perry told <em>Commercial Property Executive.<\/em><\/p>\n<p>The theater, then known as The Earle, opened in 1924. The office portion was added in 1993 and the property was renovated in 2012. Highlights of the renovation included a dramatic new atrium lobby, fitness center and Sky Terrace roof lounge with dramatic views. Located between the White House and Capitol on Pennsylvania Avenue, the property is one block from the Red, Blue and Orange Metro lines.<\/p>\n<p>Tenants include SB &amp; Co., APCO, DHA Group, Cooley and <a href=\"https:\/\/www.commercialsearch.com\/news\/baker-botts-to-lease-103-ksf-in-dcs-anthem-row\/\">Baker Botts,<\/a> an international law firm that is planning to leave The Warner Building in March 2020 for 103,300 square feet at The Meridian Group\u2019s Anthem Row project, also in the city\u2019s East End submarket.<\/p>\n<p><em>\u201cWe think it gives us the best of both worlds,\u201d<\/em> Perry said about the landmark building<em>. \u201cIt\u2019s got a base of stable tenancy and income through the lower reach of the building and the ability to make a very dramatic repositioning of some of the space.\u201d<\/em><\/p>\n<p>Perry said Baker Botts\u2019 space is <em>\u201csubstantially less than half the building\u201d<\/em> and located on the upper floors, including direct access to the roof deck.&nbsp;<em>\u201cWe think we can convert that space into some of the coolest, most exciting repositioned space in the District,\u201d<\/em> he told <em>CPE<\/em>.<\/p>\n<p>Planned capital improvements will include opening up the lobbies and common corridors, adding lots of glass and upgrading elevators. The firm will also offer concierge-level service and has brought on affiliate CBRE as the property and leasing manager, Perry said.&nbsp;<\/p>\n<p>CBRE Global Investors closed the Strategic Partners U.S. Value 8 fund in November 2017 at $1.34 billion but had begun investing from it in 2016, Perry said. Including leverage, the fund has the ability to invest about $3.3 billion. He said the firm invests across the main four sectors\u2014office, multifamily, retail and industrial.<\/p>\n<p>Perry noted the fund was most active at the end of the year and beginning of January 2018\u2014when it acquired its first D.C.-area property, <a href=\"https:\/\/www.commercialsearch.com\/news\/cbre-snags-md-mixed-use-asset\/\">North Bethesda Market,<\/a> a mixed-use property in North Bethesda, Md. The asset was a Class A property with about 183,000 square feet of retail, 411 apartments and more than 1,200 parking spaces within walking distance of the White Flint Metro station.<\/p>\n<p><em>Image courtesy of&nbsp;CBRE Global Investors<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>JBG Smith sold the historic Pennsylvania Avenue property. The 583,453-square-foot Class A office asset was 98 percent leased at the time of the sale.<\/p>\n","protected":false},"author":1068,"featured_media":1004290679,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,11,21742,21747,1615],"tags":[32789,35095,33101,34007],"class_list":["post-1004290676","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-midatlantic","category-latest","category-office","category-washington-dc","tag-cbre","tag-cbre-global-investors","tag-eastdil-secured","tag-jbg-smith-properties"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>DC\u2019s Warner Center Commands $377M - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/dcs-warner-building-gets-a-new-owner\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DC\u2019s Warner Center Commands $377M\" \/>\n<meta property=\"og:description\" content=\"JBG Smith sold the historic Pennsylvania Avenue property. The 583,453-square-foot Class A office asset was 98 percent leased at the time of the sale.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/dcs-warner-building-gets-a-new-owner\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2019-01-10T09:16:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-01-15T18:56:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/01\/1299-Pennsylvania-Ave..jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/dcs-warner-building-gets-a-new-owner\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/dcs-warner-building-gets-a-new-owner\\\/\"},\"author\":{\"name\":\"Gail Kalinoski\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/fc5b5df1393e5023d2417bd48c2fda57\"},\"headline\":\"DC\u2019s Warner Center Commands $377M\",\"datePublished\":\"2019-01-10T09:16:51+00:00\",\"dateModified\":\"2019-01-15T18:56:51+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/dcs-warner-building-gets-a-new-owner\\\/\"},\"wordCount\":759,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/dcs-warner-building-gets-a-new-owner\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2019\\\/01\\\/1299-Pennsylvania-Ave..jpg\",\"keywords\":[\"CBRE\",\"CBRE Global Investors\",\"Eastdil Secured\",\"JBG Smith Properties\"],\"articleSection\":[\"Deals\",\"Featured\",\"Mid-Atlantic\",\"News\",\"Office\",\"Washington D.C.\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/dcs-warner-building-gets-a-new-owner\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/dcs-warner-building-gets-a-new-owner\\\/\",\"name\":\"DC\u2019s Warner Center Commands $377M - 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