George Washington University Buys D.C. Office Building for $35M
The purchase is far below the $108M Carr Properties paid for it a decade ago
By Nick Trombola November 4, 2024 7:16 pm
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Indiana University isn’t the only higher learning institution buying up real estate in Washington, D.C., lately.
George Washington University closed on a 161,000-square-foot office building at 2001 Pennsylvania Avenue NW, spending $35 million. That’s just a fraction of the nearly $108 million that seller Carr Properties bought it for in 2014.
MetLife provided a $65 million loan to Carr for the acquisition at the time, but earlier this year the lender issued a foreclosure notice on the building due to an outstanding balance of $65.8 million, according to the Business Journals. An auction for the property was scheduled for late June, but it was later canceled.
The building is 67 percent leased to tenants like Strada Education Foundation and law firm Koonz McKenney Johnson & DePaolis, which provides immediate revenue and cash flow to the university while also lowering operational costs from leasing its own space. GW plans to use the building as office flex space and possibly as part of a future expansion, according to the university. Cushman & Wakefield (CWK)’s Paul Collins represented GW in the deal.
“This is a unique moment in the real estate cycle for the university to purchase this Class A asset that supports our academic mission,” Bruno Fernandes, GW executive vice president, treasurer and chief financial officer, said in a statement.
The university will retain Carr for property management and leasing services as part of a long-term contract, a Carr spokesperson told Commercial Observer.
Other universities have laid claim on buildings in central Washington, D.C., lately, especially as the city’s DowntownDC and Golden Triangle Business Improvement Districts attempt to attract colleges to use and/or buy vacant office space.
Indiana University for example acquired 1619 Massachusetts Avenue, an eight-story building along D.C.’s Embassy Row, from Johns Hopkins University in early October, while Syracuse University and Texas A&M have both recently expanded their operations in the District.
GW has made other purchases in the area as well, including an apartment building dubbed The Avenue in February, while also buying a 463,000-square-foot office property at 600 19th Street in late 2022.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
