WASHINGTON, D.C. — Principal Real Estate Investors (PREI) has acquired Washington Harbour, a 557,961-square-foot, mixed-use project in Washington, D.C.’s Georgetown submarket. The Washington Business Journal reports that the asset sold for approximately $370 million.
PREI purchased the property, which is situated along the Potomac River, on behalf of a consortium of South Korean investors. Simone Investment acted as the managing member of the consortium.
Jim Meisel, Dek Potts and Andrew Weir, senior managing directors of HFF’s investment sales group, led the HFF team in representing the seller, a joint venture between Rockpoint Group LLC and MidAtlantic Realty Partners (MRP Realty). Other members of the HFF’s sales team include executive managing director Stephen Conley and senior real estate analyst Matt Nicholson.
Washington Harbour includes two freestanding, Class A office towers that recently underwent a $50 million renovation. The office space is 96 percent leased to 26 tenants, including the law firms of Foley & Lardner and Kelley Drye & Warren, as well as communications and advertising firm GMMB Inc.
As part of the renovations, the property features a fountain with programmable light and water shows in the spring and summer months. In the fall and winter, the fountain is converted into a 12,000-square-foot ice skating rink.
In addition, the mixed-use development’s dining options include Fiola Mare, Farmers Fishers Bakers, Bangkok Joe’s, Sequoia, Tony & Joe’s Seafood Place and Nick’s Riverside Grill.
Joint venture member MRP Realty is a real estate operator focused on metro Washington, D.C. The company’s managing members have been involved in more than 20 million square feet of investment with a total capitalization in excess of $4 billion.
Rockpoint Group is a real estate investment management firm based in Boston. Rockpoint’s founding managing members have altogether invested nearly $11 billion of equity in more than 325 transactions, with a total capitalization of approximately $40 billion.
PREI is the dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of Principal Financial Group (NYSE: PFG), based in Des Moines, Iowa. PREI manages or sub-advises $46.5 billion in commercial real estate assets. PREI and Hana Daol Fund Management have been appointed as asset managers for Washington Harbour.
— John Nelson