Under-managed building in a rapidly urbanizing location
Address: 4201 Connecticut Avenue
Location: Washington, DC
Square Footage: 70,971
Investment Profile: Value-Added
Purchase Date: October 2007
Sale Date: October 2014
Purchase Price: $17,000,000
Sale Price: $23,100,000
Significant Leasing Upside
Vacancy rate of submarket of 6.0% - one of the lowest in any DC submarket. Adjacent to metro, across the street from University of DC, within minutes of the CBD in an urbanizing neighborhood
Create a CBD style Class B office building in an urbanizing uptown market
Nearly 40% of below-market leases expired three years after purchase providing an opportunity to raise these to market rates while improving tenancy
Undertook capital expenditures targeted to increasing rents including lobby, entrance, bathrooms, garage, and HVAC renovation. Provided best in market build out.
Utilized staggered lease rollover to upgrade and diversify tenant base, providing hedge against market volatility.
Improved overall look and feel of building to deliver core institutional quality asset to market.
Sold for $23.1 million (36% above purchase price)