Tier REIT Sells DC Buildings to Westbrook

TIER REIT, a Dallas-based real estate investment trust focused on commercial office real estate formerly operating as Behringer Harvard REIT I Inc., has sold two buildings in Washington, DC to Westbrook Partners in a package deal worth more than $200 million. The sale of the properties exits TIER REIT from the Washington market as these were their only two portfolio properties in the District.

Behringer Harvard acquired the 127,000-square-foot Colorado Building in August 2004 for $44 million, according to a Washington Business Journal article. In October 2005, it bought the 306,000-square-foot 1325 G for $135.5 million. At the time, CoStar quoted Behringer Harvard Chairman Robert Behringer as saying "we have a potential opportunity to enhance the value of these assets by ultimately selling them as a portfolio."

The first property at 1341 G Street, known as the Colorado Building, is one of the few category III landmark office buildings in the District of Columbia. The building was originally constructed in 1903, then renovated 1989 and 2002 with more than 127,000 square feet of rentable space. The second property is on the same block close to the White House at 1325 G Street, with 306,563 square feet of space in a building that was awarded BOMA 360 designation in 2011.

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Manhattan Office Sold for $131.7M to Epic

Property Group Partners (PGP) has closed the sale of 148 Lafayette Street in Manhattan's SoHo neighborhood to Epic UK for approximately $131.7 million, according to a GlobeSt.com article. Douglas Harmon, Adam Spies and Kevin Donner of Eastdil Secured represented PGP in the transaction. PGP owned the building in partnership with Bruce Toll and members of the Louis-Dreyfus family. The terms of the deal were not disclosed.

"The sale of 148 Lafayette Street validates our original strategy with this building," said Jeffrey I. Sussman, founder and president of Property Group Partners, in a CoStar article. "With our partners, we recognized that a complete renovation and expansion would vastly improve this asset for both tenants and investors. Not only did we fully lease the building within 24 months after purchasing it, but we have now completed the successful sale of the property just a few years later."

148 Lafayette Street, acquired by PGP in 2007 for approximately $60 million, is a 150,496-square-foot 12-story building with typical floors of 11,978 square feet. Designed by McKenzie Voorhees and Gmelin Architects in 1913, it was extensively renovated in 2007 with new heating and air conditioning systems, windows, restrooms, elevators and hardwood floors. The building earned LEED Gold Certification, BOMA 360, and an Energy Star Award for energy efficiency in 2010. Major tenants include Lafayette 148, Tower Research, Utrecht Art Supplies, Dolce & Gabbana USA Distribution and Callison.

For more news and information visit Blumberg Capital Partners.