Piedmont Office Realty Trust has paid $175.6 million, or about $526/sf, for the 333,948-square-foot Arlington Gateway office property in Arlington, Va.
The Johns Creek, Ga., REIT funded the purchase by tapping a line of credit. The price represents a capitalization rate of 5.6 percent based on this year's projected cash flow.
The building, at 901 North Glebe Road, is 99 percent leased to tenants that included global professional services company Towers Watson and law firm Nixon & Vanderhye. The average remaining lease term is 4.4 years.
An affiliate of Dweck Properties Ltd. was the seller, according to the Washington Business Journal. Transwestern Institutional Commercial Group represented Dweck.
The building was constructed in 2005.
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