Georgetown's Washington Harbour Sells For $415M
A major mixed-use property on Georgetown's waterfront has just traded hands for $415M, D.C.'s largest real estate sale of 2018.
Global Holdings Group, an investment firm led by Israeli billionaire Eyal Ofer, announced Tuesday it acquired the two-building Washington Harbour complex at 3000 and 3050 K St. NW. The $415M deal pencils out to $738/SF.
The property was sold by a group of South Korean investors advised by Principal Real Estate Investors, which retained HFF in March to market it for sale. It was last sold in 2013 for $370M by MRP Realty and Rockpoint Group.
MRP will continue to manage the property, where it is also headquartered. It brought on JLL last year to help fill vacant space by creating spec suites around common amenity space branded as Harbour Town. The property is now 98% leased to 31 tenants, including law firms Foley & Lardner and Kelley Drye & Warren.
Washington Harbour's 85K SF of retail space includes Fiola Mare, Nick's Riverside Grill, Farmers Fishers Bakers, Tony and Joe's Seafood Place and Sequoia. The buildings surround a large water fountain — where its security robot last year fell in and became a viral sensation — that turns into an ice rink during the winter.
Washington Harbour is the second D.C. acquisition for Global Holdings Group, which last year bought the Courtyard Washington Convention Center at 900 F St. NW for $83M. The investor in the last two years has bought into two major New York City office buildings, Nomad Tower and 25 Kent, in deals with a total valuation of nearly $1B.
"We are strong believers in the long-term success of this market, and unique institutional-quality assets like Washington Harbour present a great way to continue to broaden our office portfolio,” Ofer said in a release. “We look forward to serving the Washington office tenancy, and to continue enhancing and supporting Washington Harbour and everything it offers to employees, visitors, guests and tourists in the larger D.C. community.”
The deal represents the biggest price tag for a D.C. property sale so far in 2018. The previous largest deal, according to Newmark Knight Frank's office report, was the $250M sale of 1440 New York Ave. NW. The largest deal in price per SF is still the sale of 900 G St. NW, which set a record in January at $1,278/SF.