Spruced-Up DC Office Building on the Market
A Carr Properties partnership is preparing to shop a recently renovated office building in Washington’s West End neighborhood.
The 337,000-square-foot property, at 1255 23rd Street NW, is expected to fetch bids in the vicinity of $170 million, or just north of $500/sf. Washington-based Carr and its partners, MetLife Real Estate Investors and Canada Pension Plan, have given the listing to Cushman & Wakefield.
The team completed a renovation of the Class-A building last year that updated common areas and added amenities, enabling it to lift rents. The renovations included a new landscaped rooftop deck and updates to the lobby, fitness center, conference center and lounge. The property includes underground parking.
The occupancy rate is 90%, in line with the average for Class-A space in the West End/Georgetown submarket. The weighted average remaining lease term is 8.5 years. Tenants come from a wide range of sectors and include the Chronicle of Higher Education and the Chronicle of Philanthropy. The Humane Society of the United States moved in last year. A buyer could boost below-market rents as leases expire.
Known as the Floyd D. Akers building, it was completed in 1983 and was previously renovated in 2009. It’s between M and N Streets, about four blocks from the Foggy Bottom Metro station and surrounded by shops, restaurants and hotels.
The small West End neighborhood, which sits between Georgetown and downtown Washington, has undergone a recent wave of public and private development, including mixed-use projects that incorporated a library and fire station with residences, retail space and athletic facilities.
The Carr Properties team acquired the West End building in 2011 from Tishman Speyer of New York for $137.4 million. Tishman had assumed it in 2006 via its $2.4 billion acquisition of a portfolio of Washington-area properties from Blackstone.