WASHINGTON–(BUSINESS WIRE)–Columbia Property Trust, Inc., (NYSE: CXP) along with its joint venture partner Allianz Real Estate, today announced the acquisition of 1800 M Street, a 581,000-square-foot office building in Washington, D.C., for $421 million.
In addition to taking a 55 percent interest in the property, Columbia will serve as the managing partner responsible for property management and directing leasing activities. Allianz owns the remaining 45 percent interest. This is the fourth asset owned by the joint venture of Columbia and Allianz, which was formed in July 2017.
1800 M Street is a Class-A asset located in Washington, D.C.’s coveted “Golden Triangle,” bordered by Pennsylvania, New Hampshire and Connecticut Avenues and stretching from the White House to Dupont Circle. The property, which boasts trophy-quality amenities and finishes, recently underwent extensive renovations, including the modernization of the façade, construction of new dual-entry lobby, creation of a 9,000-square-foot luxury fitness center and a roof deck, as well as upgrades to the elevators, restrooms, and multi-tenant corridors. The building is 94 percent leased to multiple tenants, including Berkeley Research Group and Zuckerman Spaeder.
“With its exceptional location, physical quality, and strong occupancy, 1800 M Street is the right opportunity to expand our presence in this key market and further our partnership with Allianz,” said Nelson Mills, Columbia’s president and CEO. “The stable profile of 1800 M Street is consistent with the strategic goals we set for the joint venture and also complements the value creation opportunities we’re currently pursuing at our two existing D.C. assets, Market Square and 80 M Street.”
This acquisition further solidifies Columbia as a significant office owner and manager in the nation’s top gateway cities and brings Columbia’s Washington, D.C., portfolio to approximately 1.6 million square feet.
In addition to 1800 M Street, the joint venture of Columbia and Allianz also owns University Circle in Palo Alto, 333 Market Street in San Francisco, and 114 Fifth Avenue in Manhattan.
Source : Business Wire