Garfield Investments, Broad Creek Capital Pay Just $28M for D.C. Office

An office building in Washington, D.C.’s Navy Yard neighborhood that’s nearly half vacant has sold for just a fraction of its assessed value. 

A joint venture between Garfield Investments and Broad Creek Capital paid $28 million for Potomac Investment Properties’ 300 M Street SE, a JV spokesperson confirmed to Commercial Observer. The price equates to just one-third of the property’s 2026 assessed value of $83 million. 

Eastdil Secured’s Bradley Allen brokered the sale for the eight-story, 285,000-square-foot property, which Potomac developed in 2001. 

The building is just 53 percent occupied, mostly by defense and U.S. Navy-minded government contractors such as Amentum. Avison Young will handle future leasing efforts at the building, which Garfield founder and CEO John Mason said is ideally positioned for new defense-focused tenants. 

“Our investment reflects our confidence in the long-term demand for office space tailored to U.S. Navy contractors and the defense industry as a whole,” Mason said in a statement. 

“The Washington Navy Yard has consistently attracted defense-oriented government contractors and businesses requiring proximity and access to Washington’s federal and defense-related sector,” he said. “It continues to be a magnet for defense-related enterprises seeking proximate, efficient office space with access to world-class talent and infrastructure, making 300 M an excellent fit for our investment strategy.”

Representatives for the seller did not immediately respond to requests for comment. 

Other Navy Yard offices have traded at relative bargains. Lionstone Investments in March sold its 12-story building at 100 M Street SE to Onward Investors for $54 million — a steal compared to the nearly $80 million Lionstone paid for it in 2014. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.