Beacon Capital Partners has sold a controlling interest in a Washington DC trophy office building to Edge Fund Advisors and HSBC Alternative Investments for approximately $209 million.
Real estate investor and asset manager Edge and HSBC acquired the 381,000 square-foot property at 1350 Eye Street NW through an investment fund the two firms operate that targets properties and mortgage loans in Washington DC, New York, Boston and San Francisco. Beacon originally bought the property with Lord Baltimore Properties in 2006 for $200 million, according to data provider Real Capital Analytics.
Miami and Washington DC-based Edge’s chief executive officer Mark Keller told PERE his firm has the right to buy out the remaining 20 percent retained by Baltimore-based Lord Baltimore Properties, which he said Edge would “pick up within a period of time.”
The DC office building, just three blocks from the White House, is fully leased and was referred to as “a monumental property” by Keller in a statement, who added that Edge would expand its investment program with HSBC.
Chief executive officer of HSBC Private Bank’s Alternative Investment division Christopher Allen said the office building was “one of the finest commercial properties in Washington DC.”
The transaction is the second major office investment made by Edge and HSBC in the past six months, after the firms teamed up for a 90 percent joint venture investment in another Washington DC office property, 1625 Eye Street, in December. That deal was priced at $226 million, according to data provider Real Capital Analytics, and was acquired from Brookfield Properties.