Tokyo-based Mori Belief has acquired 601 Massachusetts Ave. NW in Washington, D.C., a Class A, 480,000-square-foot workplace constructing from Boston Properties Inc., within the metropolis’s largest deal this yr at $531 million.
The LEED Gold-certified, 11-story constructing was developed by BXP in 2015. It’s at present 98 p.c leased to tenants together with Arnold & Porter LLP, a regulation agency with a 20-year lease, and the Leisure Software program Affiliation. BXP will proceed to offer property administration companies to the brand new proprietor.
BXP structured the disposition as a 1031 alternate deal, buying Madison Centre, a Class A, 37-story, LEED Platinum licensed workplace constructing in Seattle in Might for $730 million from a three way partnership of Barings and Schnitzer West. On the time, it was the most important multi-tenant workplace sale within the U.S.
READ ALSO: Medical Workplace Sector Resists Adversity
Mori Belief’s acquisition of 601 Massachusetts Ave. NW can be a record-breaker. It’s the most important workplace transaction within the District of Columbia up to now this yr. The $531 million price ticket, which works out to roughly $1,110 per rentable sq. foot, surpassed Nuveen Actual Property’s $375 million buy of the Patrick Henry Constructing at 601 D St. NW from Tishman Speyer in March.
Owen Thomas, BXP chairman & CEO, mentioned in a ready assertion the disposition demonstrates continued investor demand for premier, well-leased workplace properties. Positioned within the Mount Vernon Sq. neighborhood, 601 Massachusetts Ave. NW is inside 1 / 4 mile of a Metro station. It’s additionally inside shut proximity to the Capital One Area and the town’s conference middle. The constructing has roughly 18,000 sq. ft of street-level retail house, together with an RPM Italian restaurant.
Thomas added the sale represents an vital milestone in BXP’s present technique of reallocating capital to the Seattle market.
BXP was represented within the transaction by Eastdil Secured and DLA Piper LLP (US).
Different offers
601 Massachusetts Ave. NW isn’t the one disposition BXP has made within the DC metro in latest months. In June, Boston Properties offered an 11-building portfolio totaling roughly 740,000 sq. ft of flex workplace, industrial and information middle house in Springfield, Va., to Finmarc Administration Inc. for $127.5 million. The mixed-use portfolio was situated throughout the Virginia 95 Enterprise Park, a 127-acre, 16-buidling advanced lower than 17 miles from downtown Washington, D.C.
The acquisition is Mori Belief’s second buy within the area. In March, Mori Belief acquired Arboretum II, two workplace buildings in Herndon, Va., totaling roughly 323,000 sq. ft of house, for $142 million from Barings. The 2 properties have been absolutely leased.
The Japanese actual property firm entered the U.S. market in January 2017 with the acquisition of two Boston workplace buildings—10 St. James Ave. and 75 Arlington St. within the Again Bay submarket—from Liberty Mutual for roughly $673 million.
