WASHINGTON, D.C. — The German investment firm Deka Immobilien GmbH has acquired a 250,000-square-foot D.C. office building from Vornado Realty Trust for $208 million in an off-market transaction. Construction of the Class A property, located at 1999 K. St. NW, was completed in August to LEED-CS Gold standards. The law firm Mayer Brown has signed a 15-year lease to occupy the building, and TD Ameritrade is housed on the ground floor. Vornado will continue to manage the property for the purchaser.
Interest in the American real estate market from overseas investors has increased as prices have dropped due to the recession. Deka Immobilien had recently purchased an office building in Vancouver, British Columbia, and was continuing to look for properties in key markets. The new, single-tenant development at 1999 K. St. fit their specifications because it will offer a steady return, according to an industry source.
Robert Stamm and Joel Coren of CB Richard Ellis’s Global Property Advisors Group served as investment advisors to Deka. Bill Prutting of the firm’s Washington office also assisted in the transaction. The deal is one of the largest in the Washington office market this year, and the investment serves as a vote of confidence in the resiliency of the city’s office industry.
— Jon Ross