WASHINGTON, D.C. — A joint venture between TIAA-CREF and Norges Bank Investment Management (NBIM), manager of the Norwegian Government Pension Fund Global, has acquired a 364,000-square-foot trophy office building in Washington, D.C. for $392 million. The joint venture purchased the property located at 800 17th St. N.W. from PNC Financial Services Group.
“This unique property is exceptionally located and provides long-term income from established tenants,” says Suzan Amato, head of strategic joint ventures for TIAA-CREF. “We look forward to continuing to source prime assets on behalf of the joint venture.”
Developed in 2010, the property includes an expansive rooftop deck, a glass curtain wall and a tenant amenity package and is LEED Platinum certified. Pittsburgh-based PNC Financial Services Group and Vornado/Charles E. Smith developed the building, according to the Washington Business Journal.
The property consists of 96 percent office and 4 percent retail. Long-term tenants include the law firm Holland & Knight and PNC Bank. The building served as the national bank’s regional headquarters.
The building is located in the central business district at the corner of 17th and H streets N.W., and is two blocks south of The White House and near Farragut Square Park.
TIAA-CREF and NBIM are acquiring the fee simple interest. TIAA-CREF will own a 50.1 percent interest while NBIM will own 49.9 percent.
TIAA-CREF is a national financial services organization with $840 billion in total assets under management as of Oct. 1, 2014. The company is also a provider of retirement services in the academic, research, medical and cultural fields.
Norges Bank Investment Management is the asset management division of Norges Bank, the Norwegian central bank. The Government Pension Fund Global is invested globally in equity, fixed-income and real estate markets and had assets worth almost $890 billion at the end of August 2014.
— Danielle Everson