Los Angeles-based private equity real estate investor CIM Group has paid $262 million (€182 million) for the two-building, 609,540-square-foot Union Square office complex in Washington, DC, according to local press reports. The properties were acquired from JP Morgan Investment Management, an affiliate of JP Morgan Chase, which owned the property for approximately one year before selling.
Located near Union Station and Capitol Hill, the buildings are fully leased to a number of DC government agencies, including the Department of Health, Office of Tax and Revenue and Department of Consumer and Regulatory Affairs.
The deal also included development rights on the site for a new 256,000-square-foot office building.
CIM Group, which has offices in San Francisco, Los Angeles and Bethesda, Maryland, already owns several properties in Washington, DC including L’Enfant Plaza; the Wardman Park Hotel; and the mixed-use City Vista complex.
The Washington, DC property market has seen considerable private interest over the past year. In October, Connecticut-based Starwood Capital Group and DC-based Perseus Realty teamed up to build the first Leadership in Energy and Environmental Design (LEED) certified luxury hotel in the district. A month prior, Dublin-based private investment firm Claret Capital acquired a 90 percent interest in the super-luxury St. Regis Hotel, located in Washington’s central business district.