Saban Real Estate Buys D.C. Office Building from Piedmont for $170M
WASHINGTON, D.C. — Los Angeles-based Saban Real Estate has purchased One Independence Square, a 334,000-square-foot office building located at 250 E. St. in Washington, D.C.’s Southwest submarket.
Piedmont Office Realty Trust (NYSE: PDM) sold the nine-story office asset to Saban for approximately $170 million.
Built in 1991 near the National Mall and the Smithsonian, One Independence was 94 percent leased at the time of sale to multiple government tenants. The property’s average weighted lease term is 10 years, according to Brent Smith, president and chief investment officer of Piedmont.
“The sale of One Independence reduces Piedmont’s exposure to the Southwest D.C. submarket and disposes of a fully stabilized asset,” explains Smith. “The net sales proceeds will be used in the short-term to pay down our line of credit as we evaluate our pipeline of acquisition candidates.”
After undergoing a major renovation in 2013, One Independence now features a rooftop terrace, modern fitness center, café and an updated lobby.
Saban Real Estate and its affiliates own real estate assets in three sectors: student housing, government office and self-storage. The company owns a portfolio of 30 student housing properties containing 20,000 beds, seven office buildings spanning 1.4 million square feet and 34 self-storage facilities totaling more than 19,000 units.
Saban recently closed on a $430 million portfolio sale of 14 office properties spanning nearly 1.5 million square feet across 11 states. The portfolio was 94 percent leased to the federal government and 99 percent leased overall.
Piedmont Office Realty Trust is an Atlanta-based REIT that owns, manages, develops and operates Class A office properties located in eight major cities in the eastern half of the United States. The company’s almost $5 billion portfolio spans approximately 17 million square feet.
Piedmont’s stock price closed on Monday, March 4 at $20.37 per share, up from $17.83 a year ago.
— John Nelson