Drawbridge Realty Acquires DC Home of CoStar in $87M Deal
Drawbridge Realty has acquired 1331 L Street, a 10-story, Class A office building in Washington, D.C. from GLL Real Estate Partners for $87 million, according to Drawbridge.
The building serves as the corporate headquarters for the CoStar Group Inc.
“We’ve been looking at the Washington D.C. CBD for a while and this asset came across our plate and checked every box that we want when looking at new acquisitions,” Bill Doyle, Drawbridge’s vice president, investments, told Commercial Observer. “We tend to focus on 3- to 10-year leased, single-tenant corporate headquarters, mission critical assets across the U.S.”
This marks Drawbridge’s third investment in the D.C. region, joining two buildings in Chantilly, Va., that currently have tenants in the defense industry. The San Francisco-based company now owns and manages approximately 500,000 square feet of property in the area and 5 million square feet nationally.
Originally built in 2008, GLL Real Estate Partners acquired the property from CoStar in 2011 for $101 million. 1331 L Street is LEED Gold certified for its core and shell, and CoStar’s offices are LEED Platinum certified.
The building boasts a 2,940-square-foot terrace on the roof, offering views of downtown D.C., and amenities include a 3,000-square-foot fitness center, a state-of-the-art conference center, and a three-level, below-grade garage.
“This asset had over six years of term remaining, and we are excited to have CoStar as a tenant within our portfolio,” Doyle said. “We hope to own this building for a long time, hopefully with CoStar continuing as a tenant.”
The building is situated in one of the country’s top office submarkets, along D.C.’s thriving 14th Street Corridor, Doyle noted. It’s close by the White House and is just two blocks from the McPherson Square Metro Station.
Nicholas Pappas and Tim McDonald of Eastdil Secured represented the seller in the deal.
Earlier this month, CoStar announced plans to acquire STR, one of the country’s largest hotel data aggregators, in a $450 million deal scheduled to close later this year.