Carr Buys 1615 L in DC for $229M

An affiliate of Washington, DC-based Carr Properties has closed on the $229 million acquisition of 1615 L Street, a 417,273-square foot office building in Northwest DC, according to city land records. Carr received the property from an affiliate of Spitzer Enterprises, which acquired the building in March of 2009 for $180 million, or $430 per square foot, and paid for the building with cash, assuming a pre-existing $138 million mortgage. Spitzer was represented in the deal by Cushman & Wakefield; representation for Carr Properties was not disclosed.

Carr Properties has made some big bets in the neighborhood, having bought the nearby Washington Post headquarters at 1150 15th Street for $159 million, a new building at 1152 15th Street $138 million, and Columbia Center, which it acquired for $258 million. 1615 L Street is a thirteen-story office building with 412,052 square feet of net rentable space, plus 263 parking spaces contained in a three-level underground parking garage. The property was nearly fully leased at the time of sale.

For more news and information visit Blumberg Partners.

Carr Buys Apex Building for $106M

DC-based Carr Properties signed an agreement this week to purchase 7272 Wisconsin Avenue in Bethesda, Maryland for $105.5 million from the American Society of Health-System Pharmacists (ASHP). Alony Hetz Properties and Investments Ltd., a holding company that specializes and focuses on real estate in Israel and abroad, has partnered with Carr on the project. Carr will finance the building’s purchase from its own resources and from a loan granted by the sellers in the sum of $53 bearing 4.5% yearly interest with its redemption date (full principal) being in 2020. In addition, Carr signed an agreement with the sellers according to which the sellers would remove their offices from the purchased building and move to the 4500 East West Building owned by Carr, construction of which was completed this year.

In the coming years, Carr Properties intends to demolish the Class B office building to develop a 935,000-square foot mixed use complex at the location with office, residential, commercial and hotel space, according to a Funder article. Demolition of the building has been an issue of community planning concern, as previous property owners and the county considered the impact last year. The property is at a desirable location, directly above a future subway stop for the new Purple Line on DC Metro.

For more news and information visit Blumberg Partners.

Top 7 Strategies for "Greening" Cities This Earth Day

The Building Owners and Managers Association (BOMA) International, a federation of 93 BOMA U.S. associations and 14 international affiliates, issued its "Top 7 Strategies" this week for commercial real estate professionals to help make cities green, complementing the 2014 Earth Day Green Cities Campaign. BOMA's mission is to advance a vibrant commercial real estate industry through advocacy, influence and knowledge, and has committed to helping its members and the industry as a whole improve energy management and sustainability practices.

"Commercial real estate is an important player in sustainability efforts taking place in cities across the U.S.," said BOMA International Chair Rich Greninger, CPM, managing director with Carr Properties, in a press release. "These tips offer property professionals effective operational strategies for reducing energy consumption in their own buildings, while also making 'green' a priority citywide."

Top 7 Strategies

— Get Connected. Local utility companies often offer demand response and other energy efficiency incentive programs for both residential and commercial buildings. Reach out to local utility companies to find out what incentives and programs are offered in your city and how buildings in your city can benefit.

— Make a Presentation. Does your building implement great energy management strategies? Contact your local chamber of commerce and offer to share your leadership insight with the business community in your city.

— Benchmark Energy Performance. Measuring performance is the first step toward improving performance. Benchmark your building's energy and water consumption through EPA's ENERGY STAR® Portfolio Manager benchmarking tool and encourage the rest of the buildings in your company's portfolio and throughout the city to do the same. Make it a team competition to be the city with the most benchmarked buildings.

— Support Incentive-Based Energy Legislation. In cities and states across the country there's terrific incentive-based energy legislation that make it more affordable for building owners and management firms to implement energy efficiency retrofits and upgrades. Find out if this type of legislation has passed in your city/state, and be sure to support it if it has. If it doesn't exist, lobby your elected officials to create legislation to incentivize energy efficiency.

— Host a Recycling Event. Host a community recycling day where tenants and community residents can drop off hard to recycle items such as batteries and LED light bulbs. Don't stop at your building; make it a citywide campaign.

— Teach Your Tenants Well. Your building management team is well versed in the latest energy management strategies. Terrific. But what about your tenants? Institute a Tenant Energy Awareness Program — use your company newsletter and/or building announcements to keep tenants informed about energy management goals and offer training, education and tips on low and no-cost energy efficiency strategies.

— "Green" the Commute. Fewer cars equal greener cities. Get your city on the road to green by offering bicycle storage facilities in your building(s).

For more news and information visit Blumberg Capital Partners.

Rockrose Acquires DC Building for $120M

Rockrose Development Corporation completed the acquisition this month of 1776 Eye St. NW in Washington, DC, from Dweck Properties for nearly $119.69 million, or $533 per square foot, according to a CoStar report. The seller was represented by Gerry Trainer of Transwestern. Craig Deitelzweig, head of Rockrose's office division, represented Rockrose in-house.

Rockrose announced in November of last year that it was under contract to purchase the property as part of a strategic plan for Rockrose to expand its office portfolio in D.C. and New York. Henry Elghanayan, Rockrose CEO, said at the time that "Plans are already underway to provide a two-story glass entrance to the building, a dramatic new lobby infused with art work, renovated restrooms, common areas, new building systems, an expanded and reformulated rooftop terrace and a new fitness center. Essentially, after our major renovations 1776 Eye Street will be a brand new building."

The building was reportedly 90% leased at the time of sale with major tenants including Gavi Alliance, Carr Properties and Japan International Cooperation Agency. Rockrose has engaged the architecture firm Leo A. Daly to transform the building and has appointed Cassidy Turley as exclusive leasing agents for the property.

For more news and information visit Blumberg Capital Partners.

Tishman Speyer Sells DC Office Building for $137.4M

Carr Properties, in a joint venture with the Canada Pension Plan Investment Board and MetLife Real Estate Investments, has purchased the Floyd Akers Building from Tishman Speyer for $137.4 million according to a CoStar report. Tishman originally acquired the building at 1255 23rd Street, NW for $107.88 million from Blackstone/CarrAmerica in 2006 as part of a larger portfolio.

The Floyd Akers Building was developed in 1983 by The Oliver Carr Company and is a 341,443-square-foot, Class A office property in the West End submarket of Washington, DC. At the time of sale the building was nearly 95% leased with major tenants including Mercer LLC, the Chronicle of Philanthropy and The Chronicle of Higher Education. CoStar reports that the asking rent per year is roughly $40 per square foot.

For more news and information visit Blumberg Capital Partners.