A joint venture between Turnbridge Equities and Fundamental Advisors LP has completed the disposition of a five-property office portfolio totaling 860,000 square feet throughout the Washington, D.C. metro for $220 million or $255.81 per square foot. GI Partners acquired the assets on behalf of its Essential Tech + Science Fund. Cushman & Wakefield represented the sellers in the transaction.
In the first half of the year, 57 office properties totaling 7.9 million square feet changed hands across the metro, CommercialEdge data shows. The transactions had an average sale price of $291.26 per square foot.
Notable deals included the $375.4 million acquisition of the 520,180-square-foot Patrick Henry Building at 601 D St. NW in the central business district of Washington, D.C. Tishman Speyer sold the 1973-built office mid-rise to Nuveen Real Estate in March.
In early April, Post Brothers paid $228 million to JBG SMITH for Universal North and South, a pair of Washington, D.C., office buildings. Arranged by Newmark, the 659,459-square-foot acquisition marked the buyer’s entrance into the metro.
GI Partners’ acquisition includes five properties that were completed between 1986 and 2000:
Located in one of the top markets for cybersecurity and defense technology employment, the properties were 96 percent leased at the time of sale to defense contractors such as Lockheed Martin Corp., General Dynamics Corp. and Northrop Grumman Corp.
A Boeing subsidiary is also on one of the assets’ tenant roster. Liquid Robotics recently expanded its lease to occupy the entire building at 460 Herndon Parkway.
Office vacancy reached 14.5 percent across the Washington, D.C., metro as of June, according to a recent CommercialEdge report. While slightly increased month-over-month, the value marked a 120-basis-point drop year-over-year, being also below the national average of 15.2 percent.
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