WashREIT To Acquire Rosslyn Office Tower, Sell Advisory Board HQ Building

2445 M St NW
The Office Building At 2445 M St. Nw.

WashREIT has reached agreements to acquire a 19-story Rosslyn office tower and to sell a West End building that will soon lose its anchor tenant.

The REIT entered into an agreement to acquire Arlington Tower, a 398K SF Rosslyn office building for $250M, it announced Tuesday. It is acquiring the building at 1300 North 17th St. from Tishman Speyer and expects the deal to close during Q1.

In the same announcement, WashREIT said it has executed a nonbinding letter of intent to sell 2445 M St. NW, a 292K SF West End office building. Employees of The Advisory Board — now split into Optum, which acquired the ABC's healthcare division, and the new company, Education Advisory Board — will vacate the building May 2019 when they finish moving into the new East End EAB HQ Douglas Development and Brookfield Property Partners are building.

WashREIT did not name the price or the buyer of the building, and it said more details will be released when it enters into a definitive contract agreement with the buyer.

The 19-story Arlington Tower was built in 1980 and recently underwent a $16M renovation. It is occupied by tenants such as B. Riley FBR, Raytheon BBN Technologies, Promontory Interfinancial Network, Graham Holdings, Pepco and the National Electrical Manufacturers Association.

”We are strategically allocating capital out of 2445 M Street and into Arlington Tower to improve our long-term growth prospects in a resurging Rosslyn, while de-risking the portfolio through increased cash flow stability and reduced exposure to single-tenant assets,” WashREIT CEO Paul McDermott said in a release.

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