Norfolk-based Harbor Group International LLC announced that affiliates of the company have acquired the 820 First Street office building in Washington, D.C., for $107 million. The building’s anchor tenant is the Washington headquarters of CNN (Cable News Network).
Harbor Group International said in a press release that the property was purchased from Baltimore-based Greenebaum & Rose Associates. Cassidy Turley served as the seller’s broker for the transaction. Harbor Group International’s investment partners in the deal include affiliates of Capstone Equities and Image Capital.
“Washington D.C., has always been one of the strongest markets for investment real estate,” Jordan E. Slone, chairman & CEO of Harbor Group International, said in the release. “The abundance of government jobs in the area keeps the economy stimulated. Unemployment and office vacancy rates outperform most other metropolitan areas in the United States.”
The office tower is an 11-story, 298,533-square-foot Class A office building. Built in1990, it’s located across from Union Station, Washington, D.C.’s largest transportation hub. According to Harbor International, the property is 99 percent leased to a tenant roster that includes CNN, Accenture and the U.S. government.
“The change to institutional ownership should allow for operational efficiencies to be achieved especially in the areas of expense control and staffing,” said Slone, “A capital improvement plan focused on elevator modernization and energy controls should positively affect the property’s performance and aid the leasing and tenant retention efforts.”
Harbor Group International is a private real estate investment and management firm which controls a portfolio of worldwide assets valued in excess of $3.7 billion. The company’s real estate holdings include more than 9 million square feet of commercial space and approximately 24,000 apartment units. It also has offices in New York and Tel Aviv.
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