Bisnow Scoop: Moves on MacArthur
A few months ago, LaKritz-Adler Real Estate Investments was the seller in one of the biggest price PSF sales ever in DC. The firm is back at the deal table, this time on the buy side. (It gets tiring doing those Scrooge McDuck head-first dives into gold coins. Sometimes it's easier to spend 'em.)
Yesterday, the firm's Josh Adler (right, with partner Robb LaKritz) confirmed to us that it has just purchased 5185 MacArthur Blvd, a 43k SF office building not far from the Maryland-DC border. Josh says the firm paid seller Rock Creek Property Group $14.9M for the fully leased building, which includes national credit tenants Starbucks and UPS on the ground floor. It was an off-market deal, Josh says, and LaKritz-Adler saw the property as "a diversified income deal that had more attractive income characteristics than deals further downtown." The firm may put some basic renovations into the property, he says, though it was last renovated about 15 years ago.
The purchase comes on the heels of LaKritz-Adler's blockbuster sale of the Dupont Circle Starbucks building, which it sold to Harbor Group International for almost $1,700/SF earlier this year. (Only now do we we realize that price includes college tuition for every Starbucks employee.) Josh says the firm is always looking for new deals, though its prefers to remain selective with its new investments.