Commercial Real Estate Direct Staff Report
Fosterlane Management Corp. is said to have struck a deal to pay $215 million, or roughly $867/sf, for Metro Center I, a 248,000-square-foot office building in Washington, D.C.
It would be the second purchase of a Washington property in less than a year for Fosterlane, the U.S. institutional real estate investment arm of the Kuwait Investment Authority. Last June, it paid $296 million, or about $886/sf, for 1200 19th St. NW, a 334,175-sf property that was sold by Hines in a deal arranged by HFF.
Fosterlane is buying Metro Center I, at 700 13th St. NW, from Beacon Capital Partners, which earlier this year hired Eastdil Secured to offer the building for sale.
The Boston investment manager bought the building from Charter Hall Office REIT in 2011 for $120 million.
The 12-story property, across from the Metro Center subway station and within three blocks of the White House, was constructed in 1989 and recently renovated. It is leased to tenants that include the law firm Perkins Coie, which has 91,000 sf, along with Union Pacific Corp. and investment advisor Landon Butler & Co. Tenants at the property's retail space include Bank of America, Au Bon Pain and Salon Nuance.
The building has a two-story lobby, fitness center and roof deck.
The Kuwait Investment Authority, which was founded in 1953, has $410 billion of assets under management, according to the Sovereign Wealth Fund Institute. It is the sixth largest sovereign wealth fund and is capitalized from profits generated by Kuwait's oil industry.
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