DC Office Building Changes Hands for $27M
The CBD property is under new ownership for the first time in 20 years.
Arlington, Va.,-based Taicoon Property Partners has acquired a 12-story, 152,000-square-foot office building at 1899 L St. NW in Washington, D.C.’s Central Business District for approximately $26.7 million and is planning to renovate the mixed-use asset.
1899 L was sold at a steep discount by longtime owner BlackRock, which acquired the 46-year-old building in 2004 for $43.7 million, Commercial Observer reported. The assessed value of the building was $66.6 million for 2024 and $77.3 million for 2023, according to CommercialEdge data.
Stream Realty Partners represented Taicoon Property Partners in the acquisition with Managing Directors Charlie Smiroldo and Matt Pacinelli leading the buyer representation. Collins Ege and Bradley Allen of Eastdil Secured represented the seller and facilitated the transaction.
In addition to advising on the acquisition, Stream also serves as the leasing agent for the building, which has 63,100 square feet available, according to CommercialEdge. Office suites available for lease range from 2,500 square feet to 13,000 square feet.
There are eight tenants in the building including Heifer International; Checchi Consulting; American Constitution Society; ANSI; Raffia, PC, Care; M&T Bank and one medical office, Advanced Endodontic Associates D.C.
Located along 19th Street’s “Restaurant Row,” the building has 15,000 square feet of retail.
Renovating and Repositioning
The new owners are planning renovations to reposition the building. Future renovations will include an updated façade, enhanced restrooms and common areas, redesigned retail storefronts and a comprehensive modernization of the building’s amenities and infrastructure. The LEED Silver-certified building has three passenger elevators and 11,700-square-foot floor plates.
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Previous renovations completed in 2022 included the main lobby, elevator cabs, a chilled beam mechanical system, conference center, fitness center and bike room.
The property has a total of 106 subterranean parking spaces. It is located less than a half-mile from two Metro subway stations.
D.C. Office Market
1899 L is not Taicoon Property Partners’ only recent office purchase in the Washington, D.C., metro. The real estate development company acquired 1501 Langston Blvd., in Arlington, Va., in June 2023 from The Air & Space Forces Association for approximately $16.3 million. The AFA headquarters had been located in the 85,422-square-foot building since 1984. AFA is leasing back its 28,715-square-foot office space there until later this year.
Leasing activity in the Washington, D.C., office market rose in the first quarter of 2024, totaling 1.7 million square feet compared to 1.3 million square feet in the previous quarter, according to Savills Q1 2024 office report. Activity was dominated by Technology, Advertising, Media, Information (TAMI), government and legal sectors. The largest lease was executed by The Washington Post, which renewed its 297,176-square-foot lease at 1301 K St. NW.
Despite the uptick in leasing activity to start the year, Savills reports overall volume is below the five-year average and availability is at a historic high. The flight to quality trend seen for several quarters across the nation is in evidence in the D.C. office market too. Savills noted trophy buildings are reporting lower availability rates, while non-trophy properties are lagging in leasing activity.
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