Polinger Development Company has acquired 99M, an 11-story, 234,000-square-foot office development in Washington, D.C.’s Capitol Riverfront, from Skanska.
The property, which opened in 2018, traded for $163 million, according to public records. Current tenants in the Class A building, which is more than 90 percent leased, include CommonGrounds Workplace, Wells Fargo and GiveCampus.
“We place a heavy emphasis on ensuring our developments meet the needs of the community, and 99M was no exception,” Mark Carroll, Skanska’s executive vice president of development operations for Washington, D.C., told Commercial Observer. “We often recapitalize our buildings at or near stabilization, and after achieving our goals for 99M we felt the opportunity was right to do so.”
Newmark Knight Frank’s Executive Managing Directors James Cassidy and Jud Ryan represented Skanska in the deal.
“The sale of 99M emphasizes the dynamic environment found in the Capitol Riverfront, and, that it has emerged as a premier location for core investors,” Cassidy told CO. “Skanska’s anticipated the maturation of this market and developed a building in 99M that reflects their global brand of excellence in delivering a completely unique offering in what has become Washington D.C.’s best performing submarket.”
Located at 99 M Street, SW, the LEED Gold building is situated just a block from Nationals Park and the Navy Yard Metro station.
According to Carroll, the mix of residential, commercial and retail opportunities quickly coming online in the Capitol Riverfront neighborhood has created a real sense of place in the area, offering residents a true live-work-play environment.
“The numerous transportation options available also provide ease of access for those living in and commuting to the Capitol Riverfront,” he said. “Skanska was instrumental in master planning the whole block, with 99M serving as an anchor for the neighborhood, to attract well-respected employers to move their offices down from the Central Business District, which had historically served primarily government employers.”
Public parks, great retail and other lifestyle amenities in the area have further filled out the Capitol Riverfront.
“With 99M, we sought out to deliver a new, modern office building in the Capitol Riverfront neighborhood that would support the ongoing growth in the area by providing an exciting work environment for employers looking beyond the Central Business District,” Carroll said. “We’re proud of what we’ve achieved with the building and the positive impact on the neighborhood.”