Paramount Group Selling DC Office Building for $115M

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Paramount Group has reached an agreement to sell 1899 Pennsylvania Avenue, an 11-story office building in Washington, D.C., for $115 million, according to the company.

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The firm did not disclose the buyer’s name. The deal, which the company noted is subject to customary closing conditions, is projected to close in the fourth quarter of the year, according to a March 6 company statement. No other deal terms were revealed.

Paramount Group acquired the property in September of 2010 for $149.4 million, according to public records.

“With the successful sale of 1899 Pennsylvania Avenue, we have now strategically sold all five of our wholly-owned assets in Washington, D.C.,” Albert Behler, Paramount Group’s chairman, CEO and president, said in prepared remarks. “This transaction once again demonstrates our determination to sell stabilized or non-core assets and redeploy that capital into higher growth opportunities.”

Notable tenants at the 191,000-square-foot building include Newmark Knight Frank and Global Environmental Facility. The LEED Gold-certified building boasts a floor-to-ceiling glass facade, a fitness center, below-grade parking and a landscaped roof terrace with views of D.C. 

The property is situated a few blocks from the White House in D.C.’s central business district. Four Metrorail lines are within walking distance of the property, as are numerous restaurants.

The property, built in 1925, was acquired and renovated by DRI Development Services in 2001 after the World Bank vacated the space, according to the Washington Business Journal. KanAm Grund bought a 95 percent stake in it for $74.8 million in 2003, before Paramount Group stepped in as the owner. 

Last September, Commercial Observer reported that the Paramount Group sold Liberty Place, a 12-story, 172,000-square-foot property in D.C. in a $154 million deal.