Case Studies
1211 Connecticut Avenue, NW
Washington, D.C.
130,000 sf
While in the bidding process we secured a 15-year NNN lease with a credit tenant for the entire retail vacancy (20,000 sf). Approximately 40% of the building’s leases expired during the first two years of ownership, of which 100% were renewed and/or released at market rates. In less then two years the property was stabilized and sold for $24,900,000, delivering a 55% IRR to our investors.
122 C Street, NW
Washington, D.C.
118,000 sf
122 C Street was purchased for $138/SF (60% of replacement cost). Prior to our purchase the building was renovated but poorly positioned in the Capitol Hill sub-market. 122 C Street is geographically one of the closest office buildings to the U.S. Capitol and Senate Office Building. It is the most economical Class B building in the sub-market. We repositioned the asset and leased 30,000 s.f. bringing the building’s occupancy to 100% while reducing expenses by $60,000 annually. In 16 months the building was sold delivering a 150% IRR to our investors.
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1522 K Street, NW
Washington, D.C.
80,000 sf
This extremely well located K Street office building was in poor physical condition with two full floors on expiring leases reducing occupancy to less than 50%. The parking garage was unusable due to structural issues and required immediate major repair. When prior contract purchaser fell out of contract, we stepped in and took over the contract. We arranged acquisition and project financing during a time of severe market volatility and invested an additional $1,800,000 for lease-up, renovation and garage repair. Within 2 years we refinanced the property with long-term financing at 75% of its $12,000,000 valuation, with proceeds exceeding the invested equity in the project. The building was sold after a 7-year hold for $33,000,000. This property was converted to a Hyatt Place Hotel after disposition.
