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Transwestern Mid-Atlantic Investment Services Group was involved in the sale of 2121 K Street - an 8-story, 133,037 sf office building located in Washington, DC's Central Business District The transaction of 2121 K Street, NW, Washington, DC was awarded one of NAIOP's highest honors,
2006 DEAL OF THE YEAR. Brokered by Gerry Trainor and Don McCully, 2121 K Street, NW sold for $67,450,000 ($507 psf) to ING Real Estate. The team decided to tie the expansion of the property to a comprehensive redevelopment project, the objective of which was to reposition the asset from a 133,000 sf, Class B office building to an attractive, 192,000 sf, Class A office structure. The team created architectural renderings of the additional three floors and construction drawings were prepared covering the installation of a new facade and HVAC systems; the renovation of the lobby, restrooms, health club facility and common areas; and the modernization of the existing elevators. |  | Having worked diligently to put all the pieces in place to illustrate the value enhancement potential of the building, the team decided to explore the option of selling the building, all development rights and plans to an investor to implement the strategy. The total sale price of $67,450,000 ($507/sf) represented a phenomenal return for a building purchased just 18 months earlier for $49,750,000 (375/sf) and served to validate the creative vision of the team. The redevelopment preparations eliminated much of the risk associated with the strategy and saved significant time for a potential buyer - a prospect that proved critical to maximizing the sale price. By acquiring a building with all of the redevelopment plans, including the TDRs, already in place, the buyer was able to acquire a rare, ready-to-go, value-add opportunity on K Street. Thus, all parties were duly rewarded for their creativity, diligence and foresight and the end result will be a larger, completely new refurbished, bear trophy quality building. | |
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