1750 K St. Commands $47M

Ownership of the 153,000-sf office building at 1750 K St. has changed hands with the St. Joe Co.'s disposition of the property to The Bernstein Cos. in a deal valued at $47.3 million. And what a difference a few years make; St. Joe walks away with an enviable profit after having acquired the property in late 2001 for just $37.5 million. The company will see a pretax gain in the amount of $7.5 million. Jim Meisel and Dek Potts of Advantis/GVA, a St. Joe subsidiary, served as the only brokers on the transaction, representing the seller.

With an address right in the Golden Triangle area of the city's central business district, 1750 K St. was built in 1970 and today, boasts an occupancy level of 89%. The 12-story, class B structure is home to the likes of the American Council for Capital Formation, the Industrial Truck Association, and trademark and copyright services firm Thomson & Thomson. Law firm Wiley Rein & Fielding LLP--which renewed its lease earlier this year for a 10-year term and expanded its occupancy to nearly 110,000 sf--leads the tenant roster. The structure also features nearly 10,000 sf of fully-leased ground-level retail, as well as a three-story underground parking facility.

Meisel tells that the marketing process brought out many investors who showed a strong interest in the property, which Advantis marketed un-priced. The final sale price of about $310 per sf is well over the $289.63 average cost per-sf for class B office properties in the District this year, according to Advantis's Mid-Year 2004 Office Report.

Source: Globe St
Arthor: Barbara Murray