New York-based real estate firm Tishman Speyer has sold the 2000 K St. NW property near Farragut West Metro station for $140.2 million, according to the Business Journal, which cited documents filed with the Washington, D.C. Recorder of Deeds last week. The 12-story, 233,000-square-foot office building was purchased by global investor Spear Street Capital, which secured a $103 million loan from Frankfurt-based DekaBank.

Originally completed in 1987, Tishman Speyer acquired the building in December 2013 for $89 million and embarked on an extensive, award-winning renovation costing $65 million. Completed in 2017, the renovation added four stories and a rooftop terrace; replaced the granite exterior with a sleek glass facade; and revamped the lobby.

2000 K Street NW, Washington, DC 20006

Current tenants include Ankura Consulting Group; DCI Group; and law firms Kramer Levin and Stein Mitchell Beato & Missner, each occupying more than 20,000 square feet. Additionally, AECOM leases 12,500 square feet, Eastdil Secured leases 9,800 square feet and TD Bank occupies 8,000 square feet on the ground floor.

Spear Street Capital, the buyer, also owns two more properties in Washington, D.C.: a 268,000-square-foot office building near Nationals Park (55 M St. SE) and a stake in the 11-story Mills Building at 1700 Pennsylvania Ave. NW, which they acquired in February 2024.

Washington, D.C. Second in U.S. Office Sales Amid Distressed Market

According to the latest national office report from CommercialEdge, Washington, D.C. recorded the second-highest office sales volume in the U.S. through June, totaling $1.3 billion. The only market surpassing this figure was Manhattan, with $1.4 billion in office sales.

However, much of Washington, D.C.’s recent sales activity has involved distressed sales, resulting in significant market-wide discounts. For example, Tishman Speyer’s sale of 2000 K Street to Spear Street incurred a net loss despite costly renovations. Additionally, in May, BlackRock sold a 152,000-square-foot office building in D.C.’s central business district for $26.7 million, a notable decrease from the $43.7 million it paid in 2004. Similarly, in March, the Market Square complex was acquired for $323 million by PRP Real Estate Investment and Morning Calm Office Finance, significantly below its previous sales prices of $615 million in 2011 and a $595 million valuation in 2015 by Blackstone.

Despite declining office values, Washington, D.C. remains the third-most expensive market in the South for asking rents, averaging $39.78 per square foot in June.

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