Limited product and international investors push investment sales in Washington, D.C.

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Jones Lang LaSalle’s Washington, D.C. investment sales team completed nearly $500 million in office, retail and land sales in the first half of 2010.  The commercial real estate firm said the level of activity stands in marked contrast to volumes for all of 2009. That year saw just three transactions closed for a total of $123 million.

“We have seen an extraordinary turnaround in the D.C. investment sales market as the limited supply of core-plus product is generating a true ‘scarcity premium,’” John Kevill, managing director of Jones Lang LaSalle said in a statement. Since the economic downturn, very few new buildings have delivered.

Domestic institutional investors are active,the company says, and international investors also are taking notice of attractive properties with low capitalization rates. “There’s a great deal of pent-up demand from buyers in countries such as Germany, the United Kingdom, Korea and Japan —  investors who never got caught up in the CMBS difficulties who are now looking for stable, well-located assets such as these in D.C.” noted Steve Collins, the head of the firm’s International Capital Group for the Americas. 

In the month of June, the team completed 5 transactions, totaling $332 million. One Virginia property included the sale of a grocery-anchored retail center known as Plaza America Retail in Reston to ARC/Angelo Gordon for $49 million. In another recent deal, Jones Lang handled the sale of Prince Street Plaza in Old Town Alexandria for a private seller. TA Associates bought the 52,809-square-foot building for $17.5 million. The property is 92 percent leased.

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