Clarion Partners has acquired a trophy office building in downtown Washington DC from Dallas-based Lone Star Funds.
The New York-based real estate investment manager has bought the Portrait Building, an eight-story asset located at 701 8th Street NW, for $98.5 million. Clarion purchased the asset on behalf of an undisclosed separate account.
“We love that micro-market in the east end, which is quickly becoming the ‘Entertainment District,’” Marc DeLuca, managing director at Clarion, told PERE, noting its proximity to the Portrait Gallery and Verizon Center. “It’s a great boutique trophy building.”
The 134,110-square-foot property currently is 90 percent occupied. Tenants include the law firms Williams & Jensen and Locke Lord. Cassidy Turley will manage the property while Cushman & Wakefield will serve as the leasing operator.
Lone Star originally acquired the asset in January as part of a larger purchase of a portfolio of about a dozen US properties from Dutch real estate investment firm Wereldhave NV for $725 million. Wereldhave sold the portfolio as part of its larger strategy to steadily shed its US real estate assets.