Shorenstein Pays Carr Properties $84M for D.C. Office Building
The purchase is Shorenstein’s first foray into the District since 2007, according to its website
By Nick Trombola June 10, 2025 1:57 pm
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San Francisco’s Shorenstein Properties has acquired its first property in Washington, D.C., in nearly 20 years, perhaps signaling a renewed interest in the District’s otherwise sluggish office market.
Shorenstein paid $84.3 million to Carr Properties for 901 K Street NW, a 219,421-square-foot office building on the District’s East End. Carr developed the building in 2009 and updated it in 2021. Shorenstein snagged a $74.3 million loan from AllianceBernstein debt funds, with $53 million of that used for the purchase, according to Bisnow.
The 12-story property is Shorenstein’s first acquisition in D.C. since 2007 and is currently its only property in the District, per the company’s website. The firm purchased the building via its Fund Fourteen.
“Carr Properties is pleased to have completed the transaction of 901 K Street with Shorenstein,” a spokesperson for Carr Properties said in a statement to CO. “We are also honored to have been retained to provide property management services and the opportunity to uphold our signature Carr Experience, prioritizing best-in-class hospitality and service for our customers.”
Representatives for Shorenstein did not immediately respond to requests for comment.
The sale comes about a month after the news that J.P. Morgan Asset Management planned to exit its minority ownership stake of Carr Properties, exchanging its 35.5 percent share for three of Carr’s properties. The names and locations of the properties were not disclosed at the time, though J.P. Morgan expected to acquire them free of debt, according to an investor filing made by fellow Carr investor Alony Hetz. Alony’s filing indicated that it planned to make an $100 million equity investment in Carr following J.P. Morgan’s departure, effectively becoming Carr’s majority stakeholder.
Carr also planned to shed two undisclosed properties for between $100 million and $110 million as it prepared for J.P. Morgan’s exit, according to Alony’s filing, and to refinance four properties with upcoming debt maturities. It was not immediately clear if its sale of 901 K Street NW was one of those planned dispositions.
Carr’s ownership of other trophy properties it has built will not be affected by the shareholder swap. That includes Midtown Center, an 869,000-square-foot office in Downtown D.C. used by Fannie Mae as its District headquarters.
D.C.’s office availability rate hit 23.5 percent in the first quarter of this year, an improvement of 20 basis points quarter-over-quarter, though the rate is still 90 basis points higher than in the first quarter of 2024, according to a recent market report from Savills. Leasing activity was on par with the five-year average at 1.7 million square feet, mostly from renewals, and rent prices stayed level at $54.71 per square foot, per the report. Those figures have yet to account for the cuts made by the Trump administration earlier this year, however, which could ultimately have years-long ripple effects in the DMV’s office landscape.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
