WASHINGTON, D.C. — Washington Real Estate Investment Trust (NYSE: WRE) has acquired a 185,000-square-foot office building in Washington, D.C., for $104.5 million. The 11-story building is located at 1775 Eye Street, NW at the intersection of 18th and Eye streets in the central business district. It sits directly across from Farragut West (blue and orange lines) and two blocks from Farragut North (red line) Metro stations.
The property was 62 percent leased at the time of sale. It is currently undergoing its second renovation, which includes a modernized lobby, common areas and fitness facility. The building was originally constructed in 1964. It received its first renovation in 1997 when the owner replaced the façade, storefronts and all of the building systems.
“Acquiring 1775 Eye Street is yet another example of Washington REIT executing on its stated office strategy acquiring high-quality, well-located urban and metro centric assets,” says Paul McDermott, the REIT’s president and CEO. “This value-add acquisition further increases our downtown footprint at a prime location that provides a tremendous opportunity to create value for our shareholders through effective leasing of this property above its current level.”
This is Washington REIT’s third acquisition in downtown Washington, D.C., this year. It purchased the 108,000-square-foot Army Navy Club building in Farragut Square for $79 million in March, and the 216-unit Yale West apartments near Mount Vernon Triangle for $73 million in February.
Based in Rockville, Md., Washington REIT is a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the metro Washington region.
It owns a diversified portfolio of 54 properties totaling about 7 million square feet of commercial space and 2,890 residential units, as well as land held for development. These 54 properties are composed of 25 office properties, 16 retail centers and 13 multifamily properties.
The company’s stock price closed at $24.52 per share on Thursday, May 1, down from $28.43 per share a year ago.
— Nellie Day