DC East End Trophy Office Building Changes Hands in $106M Deal
A joint venture between MC Real Estate Partners and an international family office has acquired 1000 F Street NW, a 95,000-square-foot office building in Washington, D.C.’s East End submarket, from Douglas Development for $106 million.
The glass-lined, 11-story building was completed in 2017 and offers high ceiling heights, boutique floor plates and five floors of private terraces.
“1000 F presented a compelling investment play in the current environment,” Andy Nathan, a managing principal of MCRE Partners, told Commercial Observer. “The smaller floor plates with abundant light and air, many with large, private outdoor spaces, coupled with an outstanding location, serves its high-quality tenant base particularly well. With long [weighted average lease terms) and trophy-level finishes, the asset provides solid cash flow and the prospects for attractive, long-term value appreciation.”
The property was 100 percent leased at the time of the sale. Notable tenants in the building include retailers Sephora and GRK Fresh, and office tenant First Data Corp.
The transaction is the second acquisition in the D.C. area for MCRE, which formed in 2019 under founders Nathan and Steve Grant. Last year, it acquired 1100 G Street NW in D.C. Overall, MCRE’s portfolio exceeds 1 million square feet in nine properties valued at approximately $600 million.
“A driving principal for MCRE is that we target acquisitions that meet the investment goals of our capital partners,” Nathan said. “Our core competencies allow us to play along the entire risk spectrum, although we do not take on ground-up development projects. At this stage in the economic cycle, while we still face significant headwinds, we believe that core and core-plus opportunities in enduring locations make a great deal of sense.”
Douglas Development was represented in the deal by Eastdil Secured. The buyers declined to reveal their brokers or if they used any.