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)
JOSS REALTY PARTNERS LLC
650 Fifth Avenue, Suite 2400
New York, New York 10019
Phone (212) 710-8193
