Paramount Group Plans to Sell Downtown DC Building for $220M
New York City-based real estate investment firm Paramount Group plans to sell 2099 Pennsylvania Avenue NW in Downtown D.C. for approximately $220 million, according to an announcement from the firm.
Paramount did not disclose the buyer in the press release or return Commercial Observer’s request for comment, but according to Washington Business Journal, the buyer is Los Angeles-based real estate investment firm CommonWealth Partners.
Paramount bought the building from Vico Capital in 2012 for $158 million, as per WBJ. The firm has increased leased occupancy at the building to 98.5 percent from 31.6 percent, Paramount Chairman and CEO Albert Behler, said in a prepared statement. “This transaction is a prime example of our approach to create shareholder value. In this instance, our strong leasing team converted an asset with large blocks of vacancy into one of the best Class A properties in the Washington, D.C. market valued at over $1,050 per square foot.”
The deal for the 12-story Class A office building is expected to close in the third quarter, according to a press release.
Paramount owns four buildings in D.C.—the Commercial National Bank Building and Liberty Place, as well as 1899 Pennsylvania Avenue NW and 425 Eye Street NW, according to the company website.