The John Buck Company has bought a Class A office property in Washington DC for $59.7 million from CBRE Investors.
The property, at 1501 M Street NW, was purchased on behalf of the Chicago firm’s third real estate vehicle, the JBC Opportunity Fund III.
The firm said in a statement the 11-storey, 170,000-square foot property was 90 percent leased. The firm has also established a DC office from which to manage the property.
John Buck did not disclose financial details, however according to data provider Real Capital Analytics the transaction was valued at $59.7 million, with John Buck assuming a $30 million first mortgage. CBRE Investors originally bought the property in February 2006 for $65.8 million – 10 percent more than its exit price.
Charles Beaver, a John Buck principal, said the firm believed Washington DC real estate would benefit from “a strong tenant base and low vacancy rates”.
This is the second Washington DC property John Buck has acquired since October last year. According to RCA, the firm also bought 1620 L St NW for an estimated $61 million from a joint venture between The Blackstone Group and TIAA.
John Buck is believed to be raising its fourth real estate fund, targeting $500 million for JBC Opportunity Fund IV.