A joint venture between Boston-based Rockpoint Group and Washington DC-based MRP Realty has purchased the largest office complex in Bethesda, Maryland.
Various media reports have revealed that the venture has purchased the Air Rights Center, located at 4550 Montgomery and 7315 Wisconsin avenues, from TIAA-CREF. Although financial terms of the transaction were not disclosed, data provider Real Capital Analytics lists the purchase price at $240 million.
Originally built in 1964, the complex, which is seven miles northwest of Washington DC's central business district, consists of three buildings and a development site. Rockpoint and MRP plan to renovate the three existing buildings and build a fourth office building on the site.
The 687,870-square-foot complex currently is 93 percent occupied. Tenants include Calvert Investments, Acacia Life Insurance and the Mergis Group. The development site, located at 7300 Pearl Street, is approved for a roughly 150,000-square-foot office building.
TIAA-CREF originally purchased the asset for $144.2 million in April 2002. The New York-based firm put the property on the selling block last summer.
Separately, Rockpoint currently is raising equity for its latest opportunistic vehicle, Rockpoint Real Estate Fund (RREF) IV. The firm is seeking $2.5 billion in commitments to invest mainly in distressed US properties, with an ability to invest in Europe and Asia as well. Although it is unclear whether or not this asset was purchased on behalf of RREF IV, the asset does not appear to fit the fund’s investment strategy.