WASHINGTON — Paramount Group recently acquired Liberty Place from Beacon Capital Partners, a 169,542-square-foot, 12-story landmark property located at 325 7th Street NW in Washington. Though Paramount did not disclose its purchase price, The Wall Street Journal reports that the building sold for $139 million, or $808 per square foot.
Liberty Place was built in 1991 and later annexed the Fireman’s Fund Building, a historic property constructed circa 1882. With views of Pennsylvania Avenue and iconic Washington landmarks, the building is situated within the Penn Quarter District, equidistant from the White House and Capitol Hill.
Tenants include Pfizer, Fidelity Real Estate Company, the National Retail Federation, the American Hospital Association and the Chicago Mercantile Exchange. The property is currently 94 percent leased.
“Liberty Place is an exceptionally attractive investment for the Paramount Group,” said company president & CEO Albert Behler. “The property met, and in fact exceeded, our acquisitions criteria, which includes its location in a prominent central business district with a sought-after address and easy access to public transportation.”
Paramount Group was represented in-house in the transaction by Vice President Dan Lauer and Assistant Vice President David Zobel, both in Paramount’s Acquisitions group.
Jones Lang LaSalle’s Capital Markets team represented Beacon Capital, in addition to securing a senior mortgage loan from a life company. Managing Directors Wes Boatwright and Steve Collins, Senior Vice Presidents Jim Molloy and Jon Goldstein and Vice President Jim Gladden, along with former Jones Lang LaSalle brokers John Kevill and Collins Ege, worked on the sale.
“With approximately 100,000 square feet of tenant space set to rollover within the next four years, Liberty Place offered investors significant near-term upside,” said Boatwright. “Lenders all over the world were clamoring for a chance to finance this phenomenal property, but as we’re seeing more and more lately, it’s life companies that are coming up with the best terms.”
Additionally, Jones Lang LaSalle’s Agency Leasing team, including Managing Director Trip Howell and Senior Vice President Amy Bowser, has been hired as the leasing agent for Liberty Place.
“This well-occupied property combines long-term tenancy with adequate near-term lease expirations, allowing for re-letting at improved rental rates, thereby increasing asset value,” added Behler. “Topping all this off, we were able to achieve exceptionally beneficial financing due to our outstanding credit as owner/manager of millions of square feet of trophy office assets in cities on both U.S. coasts.”
— Dan Marcec