1620 L STREET

BUILT

1989

ACQUIRED

2008

LOCATION

Washington, D.C.

TYPE

Property Management, Project Management

SIZE

Floors

SF

Property Characteristics

  • Property includes 70 parking stalls on 3 below grade levels
  • Property is located in the heart of Washington D.C.’s Golden Triangle business district, just four blocks north of the White House

Investment Strategy

  • Capitalize on the property’s location to reposition the asset and stabilize tenancy
  • Reposition building with base building upgrades including garage, lobby, fitness & conference amenities, elevator modernization and restrooms

Achieved Results

  • Completed capitalization of asset in September 2011 which sold 50% of equity at price above original basis
  • Simultaneous with equity recap, refinanced acquisition loan provided by Hypo Real Estate with new loan from HSBC which provides funding for future leasing
  • Reopened repaired garage in January 2009
  • Major capital improvements project in process at building
  • Conversion of drive aisle to usable square footage
  • Installed windows alone ½ of East wall on 12th floor, dramatically enhancing leasability
  • Achieved annual operating expense reductions through re-bidding security, janitorial, and utility contracts
    Liberty Mutual
  • Created leasable square footage of 1,730
  • $175/SF total costs accretive to acquisition ($384/SF basis)
  • $1 million value creation (3.2x multiple on project cost)
    Amenity
  • Zoning rights obtained to enclose remaining drive aisle for future building amenities