Because of incorrect information, the sale price of the Investment Building at 15th and K Streets NW was incorrectly reported in yesterday's Business & Finance section. The sale price was $16 million.
The Investment Building, a 52-year-old downtown landmark, has been sold for $26 million, more than twice the price when it last was sold in 1979.
A group headed by Scott and Gary Nordheimer, Mike Feldman and the New York-Toronto realty investment firm of Olympia & York Co., bought the building from the Rozansky & Kay development firm.
The 11-story, 250,000-square-foot building on the northwest corner of 15th and K streets NW has no central air conditioning.
The price works out to more than $100 a square foot, indicating the high value placed on the land in the heart of midtown. Leases in the building -- which has many long-time realty tenants including the Washington Board of Realtors and Thomas (The Cork) Corcoran -- are said to average $12 to $15 a square foot. That's about half of what is being asked for space in new prime-location buildings being erected downtown.
Almost echoing the words of Alan Kay, the new purchaser two years ago, Gary Nordheimer said yesterday that the new ownership will study several ways of modernizing the building, which was developed by F. H. Smith Co. in the late 1920s. Kay had said "we plan a floor-by-floor upgrading and a clean-up and refurbishing of the stone facade."
This is the first acquisition of a major office building by the Nordheimer-Feldman group, which has been converting apartments to condominium ownership.