WASHINGTON, D.C. — Liberty Property Trust (NYSE: LRY) has acquired 2100 M Street N.W., a 290,762-square foot, eight-story office building in Washington, D.C., for $133.5 million. The seller was Hines Interests LLP. Currently 77 percent occupied with 66,366 square feet available for lease, the property is located at the prominent intersection of M Street N.W. and 21st Street N.W.
The building is situated in a prime location, according to Liberty Property Trust officials, surrounded by a strong amenity base with dining, convenience retail and hotels all within a three-block radius. The property is four blocks from both the Red and Orange/Blue Metro rail lines and also provides access to residential communities north and west of the downtown district.
The Class B+ multi-tenant property was developed in 1969 and renovated from 2007-2010. The property has earned the Energy Star certification, delivering energy cost savings of an average of 30 percent that are passed directly to the tenants.
According to the Washington Business Journal, Hines retained Eastdil Secured LLC earlier this year to market 2100 M Street N.W. The building was among a handful of value-add properties to hit the market. Others included Washington Harbour, One Metro Center and the Bond building at 1400 New York Ave. N.W.
“We have been seeking well-located acquisitions in Washington, D.C.’s core submarkets where we can apply our leasing, property management and development capabilities,” says Ben O'Neil, vice president of Malvern, Pa.-based Liberty Property Trust. “Our existing downtown properties are 99 percent occupied, and the acquisition of 2100 M Street N.W. provides us with an infusion of leasable space, in addition to future redevelopment and expansion possibilities.”
Current office tenants include The Urban Institute, George Washington University, Stewart & Stewart, GSA-SSA, and retail tenants including The UPS Store and M Street Store.
The transaction also includes the conveyance of 105,000 square feet of transferable development rights. The site's zoning would permit a future redevelopment of the building to a maximum of 415,000 square feet, according to O'Neil.
Liberty Property Trust’s 81 million-square-foot portfolio includes 666 properties that provide office, distribution and light manufacturing facilities to 1,800 tenants. The REIT’s Washington portfolio totals 890,000 square feet and includes 1100 17th St. N.W., The Liberty Building at 1129 20th St. N.W. and 1425 New York Ave.
Liberty’s stock price closed Thursday at $42.60 per share, up from $34.94 per share one year ago.
— Matt Valley