Rockrose Development is in contract to purchase a Class A office building in Washington DC that is located just three blocks away from the White House.
1776 Eye St.
According to a statement from the New York City-based real estate firm, it is acquiring 1776 Eye Street NW from Washington DC investor Ralph Dweck. Although the final closing price was not disclosed, the reported asking price was $140 million. Dweck originally purchased the 10-story property in 2006 for $125 million, based on data from Real Capital Analytics.
1776 Eye Street is a 225,000-square-foot office building at the corner of 18th Street NW in Washington's Golden Triangle business district. The property currently is 90 percent leased to tenants that include Dow Chemical, Conoco Phillips, Fujitsu and the Representative of German Industry and Trade.
The purchase is part of Rockrose's strategy to expand its office portfolio in DC and New York. Craig Deitelzweig, director of commercial leasing at Rockrose, told PERE that in addition to 1776 Eye Street, the firm intends to purchase at least two more properties in the Washington DC area and “one or two properties in New York” over the next 12 months.
Henry Elghanayan, chief executive officer of Rockrose, said in a statement: “Plans are underway to provide a two-story glass entrance to the building, a new lobby infused with art work, renovated restrooms and common areas, new building systems, an expanded rooftop terrace and a new fitness centre.”
Rockrose hired the architecture firm Leo A Daly to renovate the property. Deitelzweig added that the firm plans to spend roughly $14 million on renovations.
This acquisition follows Rockrose's purchase and refurbishment of 1150 18th Street NW – an office building two and half blocks away – earlier this year. Elghanayan noted that the firm increased occupancy of 1150 18th Street “from 78 percent to 96 percent in just six months.”