John Buck sells DC office to core investors

The Chicago-based firm has sold 1501 M Street NW in the US capital less than 18 months after acquiring it at discount from CBRE Investors. The property was bought through JBC's $289m Fund III.

The John Buck Company has sold the Washington DC office property it bought from CBRE Investors last summer to US institutional investors.

1501 M St

The Chicago-based private equity real estate firm sold the 177,525-square-foot Class A office property out of its $289 million JBC Opportunity Fund III vehicle, which closed in March 2006, according to a statement from broker Cassidy Turley.

The fund made a total of six investments, including two properties in Chicago and Washington DC and two debt positions secured against assets in Los Angeles, Boston, Washington DC and Chicago.

John Buck bought 1501 M Street NW in July 2009 in a deal valued at $59.7 million. According to data provider Real Capital Analytics, John Buck assumed a $30 million first mortgage and paid 10 percent less than seller CBRE Investors, which originally acquired the property in February 2006 for $65.8 million.

The office property, which is 93 percent leased, was sold to investors advised by JPMorgan Asset Management, the statement added. John Buck is currently investing its fourth real estate fund, JBC Opportunity Fund IV, which was believed to be targeting $500 million.