WASHINGTON, D.C. — Washington Real Estate Investment Trust acquired an eight-story, 130,434-square-foot office building located at 1227 25th St. in Washington, D.C., for $47 million from Vornado Realty Trust. The building is currently 72 percent leased to the GSA and law firm tenants, sits adjacent to another WREIT office building located at 2445 M Street, which was acquired in 2008. The building also contains a two level parking garage. WREIT hopes to lease out the rest of the building soon. Jim Meisel and Derek Potts of Holliday Fenoglio Fowler’s D.C. office brokered the deal on behalf of the seller. WREIT represented itself. The acquisition was funded using available cash and their line of credit. ??
This is not the first property WRIT has purchased in the D.C. area this year. In January the company bought another 12 story, 184,135-square-foot office building located at 1140 Connecticut Ave. for $80.25 million. ??
Currently, WREIT owns 87 properties, which consist of 27 office properties, 16 industrial/flex properties, 18 medical office properties, 15 retail centers and 11 multifamily properties. In 2010, WREIT announced it’s plans to sell off it’s 2.95 million square feet of industrial properties, preferably in a portfolio, in order to fund future acquisitions and streamline its assets. At this time, the portfolio remains unsold. ??
For the most part, REITs have been sitting on the sidelines for the past couple of years but have become much more active recently. In March alone REBusinessOnline.com reported three stories related to REIT activity. First, Realty Income Corp. purchased a 33-property portfolio for $544 million, which included distribution, manufacturing, office and retail properties. Next, Senior Housing Properties Trust acquired a $304 million portfolio that included 20 communities located in the South. Finally, Equity Capital Management sold a $625 million net-lease portfolio to two parties, an institutional firm and a REIT. If these stories are any indication, then REITs are most certainly making a comeback.
— Savannah Duncan