OVERVIEW

Under-managed building in a rapidly urbanizing location

Address: 4201 Connecticut Avenue

Location: Washington, DC

Square Footage: 70,971

Investment Profile: Value-Added

Purchase Date: October 2007

Sale Date: October 2014

Purchase Price: $17,000,000

Sale Price: $23,100,000

INVESTMENT THESIS

Well Located

Reposition Opportunity

Significant Leasing Upside

Vacancy rate of submarket of 6.0% – one of the lowest in any DC submarket. Adjacent to metro, across the street from University of DC, within minutes of the CBD in an urbanizing neighborhood

Create a CBD style Class B office building in an urbanizing uptown market

Nearly 40% of below-market leases expired three years after purchase providing an opportunity to raise these to market rates while improving tenancy

EXECUTION

UPGRADED INFRASTRUCTURE

Undertook capital expenditures targeted to increasing rents including lobby, entrance, bathrooms, garage, and HVAC renovation. Provided best in market build out.

DIVERSIFIED RENT ROLL

Utilized staggered lease rollover to upgrade and diversify tenant base, providing hedge against market volatility.

ELEVATED PROFILE

Improved overall look and feel of building to deliver core institutional quality asset to market.

RESULTS

Sold for $23.1 million (36% above purchase price)