Boston-based pension fund advisor AEW Capital Management has sold a Washington, D.C. office building that it purchased14 months ago. SSR Realty Advisors, also a Boston-based pension fund advisor, bought the property for $43.7 million, or $310 per sq. ft. The initial return for 1899 L Street, a 139,478 sq. ft. office building located downtown, was 6.7%.
"AEW was pleased to be able to take advantage of superior buyer interest for quality, well-located office product in D.C.'s Golden Triangle,” says AEW Principal and Portfolio Manager Kathryn Sweeney. “This property received strong institutional attention from top-tier investors, and we are pleased to have selected and transacted with SSR Realty Advisors."
AEW’s decision to flip the property was well-chosen, according to Bill Prutting, first vice president for CB Richard Ellis, which represented AEW in the deal. “When AEW purchased the building 14 months ago, the price paid per square foot was close to $240,” says Prutting. “And in just over a year, we assisted our client in achieving a 30% ($70 per foot) profit.”