D.C. Office Complex Trades for $356M

The Washington, D.C., office complex that stretches from 1100 to 1101 4th St. at Waterfront Station has recently been traded in a $356 million transaction. The trade took place between owner and developer Waterfront Associates L.L.C. and USAA Real Estate Company. Waterfront Associates began construction in 2008 and finished just one year ago, costing roughly $245.9 million.

In 2008, the complex began development with the help of a $250 million non-recourse construction financing package. The package involved a slew of banks, including Bank of New York Mellon, Bank of Ireland, and Wachovia.

The buildings feature both ground-level retail space and Class A office space. Combined, anchor tenants Safeway supermarket and CVS Pharmacy inhabit 67,000 square feet of retail space, while the Government of the District of Columbia has a 15-year lease on all of the available office space. USAA obtained the assets for the trade through its Government Building Fund. The real estate firm is just one of many that have taken advantage of what has become one of the strongest office markets in the country.

According to a report provided by commercial real estate firm Cassidy & Turley, the greater Washington, D.C., area generated office investment sales of nearly $1.9 billion in the first quarter of 2011. Currently, the District is on track to exceed the historical annual average of $5.4 billion.