Rockfeller JV buys DC office in estimated $200m deal

The Rockefeller Group has acquired a 290,000-square-foot Washington DC office for a rumoured $200 million from The JBG Companies and Rockwood Group.

Rockefeller partnered with the New York investment arm of its parent company Mitsubishi Estates to close the deal for 1101 K Street NW, the firms said in a statement. Financial details were not disclosed, but data tracker Real Capital Analytics said the rumoured price was $200 million. JBG and Rockwood acquired the development site at K Street in 2004 for an estimated $22.3 million, and in March 2009 refinanced the first mortgage replacing the construction loan with a $100.5 million mortgage from Helaba.

The deal is Rockefeller’s first transaction from its Washington DC office, which opened in November 2010. Paul McDermott, head of acquisitions and in charge of the deal, said it was an “auspicious beginning for our office”. The 10-storey K Street property is currently 80 percent leased. Rockefeller and Mitsubishi said they were both targeting high quality properties in key markets “with long-term sustainable value”.

Mitsubishi Estate has also acquired two office buildings and a hotel in central Tokyo from Lone Star, according to Reuters and first reported by Nikkei. The 18-storey west wing and 24-storey east wing of the Kokusai-Shin Akasaka complex and an adjacent hotel were reportedly purchased for an estimated ¥90 billion (€783 million; $1.1 billion).