BXP Buys One of D.C.’s Tallest Buildings for Just $34M
Reports say the office property has been vacant for about 2 years. Hines paid $61M for the development three decades ago.
By Greg Cornfield January 2, 2025 7:05 am
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BXP is taking advantage of the hollowed office real estate market in Washington, D.C.
The Boston-based real estate investment trust agreed to pay $34 million, or just under $113 per square foot, for the 12-story building at 725 12th Street NW in Downtown D.C., Business Journals reported. The 32-year-old development next to the Metro Center station entrance is one of the tallest in Washington at almost 200 feet high.
The 302,000-square-foot building is believed to be vacant since law firm Williams & Connolly moved its headquarters to The Wharf in Southwest D.C in 2022 after 30 years at the 12th Street property.
The sale is evidence of how the D.C. office market has changed the past decades. Hines acquired the property for $61 million in 1993, and secured a $135 million refinance loan from Allianz Life Insurance in December 2015, property records show. The most recent assessment valued the asset at $95 million.
Boston-based BXP, formerly known as Boston Properties, controls most of Reston Town Center and some other D.C. offices. The firm reported significant improvements to its national leasing activity, along with a 4 percent quarterly revenue increase, up to $859 million, in the third quarter of 2024.
Meanwhile, Hines owns 25 commercial real estate properties in Greater D.C.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
