Douglas Sells New F Street Office Building For $106M
Douglas Development has sold an office building it delivered four years ago in D.C.'s East End neighborhood in a nine-figure deal.
The developer sold the 1000 F St. NW building to an affiliate of MC Real Estate Partners for $105.9M in a deal posted Wednesday to the D.C. Recorder of Deeds.
The 11-story building consists of 93K SF of office space with 7K SF of retail, plus two levels of below-grade parking. It sits one block from the Metro Center station.
"We built a beautiful building that attracted multiple Fortune 500 and Fortune 100 companies, and we executed on our business plan of creating great value and were able to monetize that value," Douglas principal Norman Jemal told Bisnow.
The building, designed by Shalom Baranes Associates, landed office tenants including Juul Labs, McDonald's, Tyson Foods, Steelcase, First Data and the Recording Industry Association of America. It also signed Sephora in the ground-floor retail space.
Douglas built the project on spec and delivered it in 2016. In 2018, it secured a $52.8M refinancing deal for the project. CBRE Vice Chairman Randy Harrell leased the office space, and Eastdil Secured Managing Director Nicholas Pappas represented Douglas in the sale.
Jemal said it plans to use the proceeds from the sale to fund its planned developments and to pursue new acquisitions. Douglas has a vast portfolio of office and retail properties across the city, including many of 1000 F St.'s neighbors.
"We think there will be some good opportunities out there, and we're trying to seize any opportunities we can," Jemal said.
The buyer, New York-based MC Real Estate Partners, owns at least three other buildings in the region, including 1100 G St. NW and office properties in Bethesda and Rockville.
“The purchase of this fully leased trophy level property is wholly consistent with our mission of pursuing acquisitions that best match the capital requirements of our partners across economic cycles,” MCRE Managing Principal Andy Nathan wrote in a statement.