Tishman Speyer Sells D.C. Office Building for $140M
The nine-figure deal comes seven years after a $65M renovation.
By Nick Trombola July 17, 2024 1:25 pm
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The good news? A 12-story office building in Downtown Washington, D.C., sold for nine figures. The bad, if unsurprising news? It was an overall net loss for the seller after an expensive renovation.
New York-based real estate giant Tishman Speyer has sold 2000 K Street NW to Spear Street Capital for $140.2 million, according to the Business Journal, which cited property records. Spear Street landed a $103 million acquisition loan from Germany-based DekaBank for the deal.
Tishman had purchased the 242,000-square-foot building at the end of 2013 for $89 million, and since completed a $65 million renovation. The updates, completed in 2017, included a four-story expansion, a new glass facade and a rooftop terrace, per the Business Journal.
Still, the property is well occupied — also a rarity for Downtown D.C. these days. The building is 91 percent leased, according to CoStar, with tenants such as law firms Kramer Levin and Stein Mitchell Beato & Missner, advisory firm Ankura Consulting Group and public relations and lobbying firm DCI Group.
“We are pleased to have completed the sale of 2000 K Street to Spear Street Capital and are proud of what we achieved at the asset,” a spokesperson for Tishman told Commercial Observer.
Representatives for Spear Street did not immediately respond to a request for comment.
Few office buildings in the District are selling these days, and the ones that do sell often go for sizable discounts.
Take the 123,000-square-foot building at 1750 H Street NW, just a few blocks away from the White House. State Farm Life Insurance acquired the property, albeit at a foreclosure sale, at the end of June for $17.6 million — which is 73 percent less than the$65 million that previous owners bought the building for in 2010.
Or there’s 1899 L Street NW, which was bought by Taicoon Property Partners in May for $26.7 million. That’s nearly 39 percent less than what seller BlackRock bought it for in 2004.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
