Chicago, IL/New York, NY (PRWEB) October 2, 2008
1620 L Street NW Washington D.C. has been acquired by The JBC Opportunity Fund III, L.P., a discretionary real estate fund managed by Chicago-based The John Buck Company. This is the second D.C. asset purchased by the firm and its third acquisition in the last 60 days attesting to the firm's ability to close transactions in today's difficult capital environment. Financing was provided by New York based Hypo Real Estate Capital Corporation.
Built in 1989, 1620 L Street is a 12-story, 164,079 square foot "Class B" office property located in the heart of Washington D.C.'s Golden Triangle business district, just four blocks north of the White House. Tenant's enjoy proximity to three metro stations (Farragust West, Farragust North and McPherson Square) providing access to all lines of the Metrorail system. Additionally, the property features easy access to expressways, all major thoroughfares and the nearby Connecticut Avenue retail corridor.
The John Buck Company ("JBC") will provide asset management out of its Chicago office while Cassidy & Pinkard Colliers will provide management and leasing services. JBC previously acquired 1901 L Street in 2003 and later sold the asset in 2005.
"We are extremely pleased to return to one of the nation's strongest commercial real estate markets," said Charles R. Beaver, Principal of The John Buck Company. "Washington D.C continues to enjoy stability from a strong tenant base along with low vacancy rates and we believe the market will remain strong for well-located and attractive assets," he added.
Although the asset is 97% leased, The John Buck Company plans to reposition the asset to "Class A" with a capital improvement program including upgrades and repairs to the garage, façade, lobby and elevators in an effort to retain the current tenants and attract new firms to the building.
Evan F. Denner, Deputy CEO of Hypo Real Estate Capital Corporation, said: "This loan evidences HRECC's ability to provide a loan structure that will enable The John Buck Company to enhance the long term value of this property and invest in capital improvements. We welcomed the opportunity to begin a relationship with one of the country's most successful and highly-regarded real estate companies and look forward to strengthening this relationship in the future."
Hypo Real Estate Capital Corporation provided financing for the transaction, while the JBC Opportunity Fund III posted the equity. The seller, DC-1620 Limited Partnership, a join-venture of TIAA and Blackstone, was represented by Holliday Fenoglio Fowler, L.P.