Brookfield Office Properties Inc. has acquired 799 9th Street, NW in Washington, D.C. for $106 million or approximately $522 per rentable sq. ft. Brookfield is funding the acquisition through new property-level financing of $71.5 million and the balance from available cash resources.
799 9th Street, NW is a 10-story, LEED Gold-certified, class-A office building located in the East End submarket, adjacent to the City Center project and one block from three Metro lines. Built in 2001, the building holds 203,000 rentable sq. ft. and is currently 96 percent occupied with all leases expiring in December 2012 and January 2013. The property has 156 parking spaces and several street-level eateries, including OYA Restaurant.
Brookfield owns two buildings immediately adjacent to 799 9th Street: 701 9th Street, NW and the Victor Building at 750 9th Street, NW, which collectively are 97 percent leased, creating a campus-like concentration of class-A space in the East End submarket, which has the lowest office vacancy in downtown Washington, D.C.
"The East End submarket is thriving, with low office vacancy, new amenities coming online, and an overall 24/7 neighborhood feel," Dennis Friedrich, president and global chief investment officer at Brookfield Office Properties, said in a statement. "Our investments in several of the premier office buildings in this submarket are consistent with our strategy of owning high-quality assets in the best-located areas of our core U.S. markets."
Brookfield owns 31 office properties overall in the Greater Washington, D.C. area totaling 8 million sq. ft.