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Capital Business
Posted at 02:35 PM ET, 12/13/2012

Washington office building sells for record $734 million


The Constitution Center building. CREDIT: Ricky Carioti / TWP. (RICKY CARIOTI - THE WASHINGTON POST)
A 1.4 million-square-foot office building near L’Enfant Plaza sold for $734 million Thursday, a figure believed to be the highest price ever paid for a building in Washington.

The seller, David Nassif Associates, confirmed the deal Thursday.

Constitution Center, at 400 7th Street SW, occupies a complete city block. It underwent a complete overhaul following the departure of the U.S. Department of Transportation to Southeast D.C. in 2007.

The building is being purchased by CC Owner, LLC, a joint venture between MetLife and Clarion Partners, according to Tim Jaroch, managing general partner for David Nassif.

As the building’s renovation neared completion, David Nassif landed one of the largest leases in the city’s history, a 900,000-square-foot deal with the Securities and Exchange Commission.

The SEC later backed out of the deal, prompting congressional inquiries, and David Nassif was forced to find other government tenants to fill the building, including the Federal Housing Finance Agency, the Office of the Comptroller of the Currency and the Federal Trade Commission. The National Endowment for the Arts and the National Endowment for the Humanities may fill the remaining portions.

Office developer and manager Hines will manage the building for the new owners, Jaroch said.

“We are pleased to acquire an asset of this quality, which is positioned to provide attractive returns over a long-term investment horizon,” Robert Merck, global head of MetLife Real Estate Investors, said in a statement.

Follow Jonathan O’Connell on Twitter: @oconnellpostbiz

By  |  02:35 PM ET, 12/13/2012

Tags:  Constitution Center, MetLife, Clarion Partners, Securities and Exchange Commission, Federal Housing Finance Agency, commercial real estate

 
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