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Thursday, 12 October 2017

Columbia Property, Allianz Venture Pays $421Mln for Washington, D.C., Office Building

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A venture of Columbia Property Trust Inc. and Allianz Real Estate of America has paid $421 million, or nearly $725/sf, for 1800 M St. in Washington, D.C.

PGIM Real Estate, the investment management unit of Prudential Financial Inc., sold the 580,930-square-foot office property in a deal brokered by HFF.

Columbia Property, an Atlanta REIT, holds a 55 percent stake in the venture and will handle property management and leasing. Allianz is a unit of Allianz Real Estate of Munich, Germany.

The deal is the first acquisition for the venture since its formation in July to pursue up to $2 billion of investments in class-A office properties. But it started life with three properties.

Columbia Property had seeded it with two: University Circle, a 451,000-sf property in Palo Alto, Calif., and 333 Market St., a 657,000-sf building in San Francisco. Both properties are fully leased. Columbia Property, the former Wells REIT II Inc., purchased University Circle for $293 million in 2005, and 333 Market St. for $395.3 million in 2013. It values them at $540 million and $500 million, respectively.

Meanwhile, Allianz contributed 114 Fifth Ave., a 352,000-sf property in Manhattan's Flatiron District that is fully leased. Allianz purchased a 95 percent stake in the building two years ago for $198.55 million. The venture of Columbia Property and Allianz now own 99 percent of the building, while L&L Holding Co. owns the remainder.

The building at 1800 M St. is 94 percent leased to tenants that include Berkeley Research Group and Zuckerman Spaeder, a law firm. The property underwent renovations in 2014, including the construction of a new lobby, rooftop deck and 9,000-sf fitness center, along with upgrades to its elevators, restrooms and corridors.

Columbia Property owns two other office properties in Washington: the 285,000-sf building at 80 M St., which is 94 percent leased, and Market Square, with 698,000 sf at 701 and 801 Pennsylvania Ave. It owns a 51 percent stake in Market Square, which is 77 percent occupied, while Blackstone Property Partners owns the remainder.

Comments? E-mail Tim Casey or call him at (267) 247-0112, Ext. 213.


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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Washington
  • States: District of Columbia
  • Sector: Office
  • Subject: Property Acquisitions (ACQ)
  • Valuation: More than $150 million
  • Private: No
Read 638 times Last modified on Thursday, 12 October 2017

Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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