Paramount Adds 172,734-SF Office Asset with Near-Term Leasing Upside to Portfolio
Beacon Capital Partners finalized the sale of Liberty Place, a 172,734-square-foot office building at 327 Seventh Street, NW in Washington, DC. Paramount Group purchased the asset for $139 million, or nearly $805 per square foot.
The property last traded in 2007 as part of a $6.35 billion multi-property deal between Beacon and The Blackstone Group.
Built in 1991, the 12-story, Class A structure is at 325 Seventh St. NW in the East End/Penn Quarter submarket. The American Hospital Association, National Retail Federation, The C2 Group and Pfizer Inc. lead the tenant roster of the 94 percent leased building.
Wes Boatwright, Steve Collins, Jon Goldstein and Jim Gladden of Jones Lang LaSalle's Capital Markets team secured financing for the transaction. Jones Lang LaSalle broker Jim Molloy, along with former JLL brokers John Kevill and Collins Ege, negotiated for Beacon. Paramount used in-house representation.
JLL also secured senior mortgage financing for the transaction from a life insurance company.
"With approximately 100,000 square feet of tenant space set to rollover within the next four years, Liberty Place offered investors significant near-term upside. Lenders all over the world were clamoring for a chance to finance this phenomenal property, but as we’re seeing more and more lately, it’s life companies that are coming up with the best terms," said Boatwright.
Boston-headquartered Beacon Capital is a 13-year-old property investment group headed by Alan Leventhal that targets commercial office buildings in urban markets.
Paramount Group is a New York-based commercial real estate investment and management firm that controls 13 million square feet of Class A office space. The company's DC-area portfolio also includes the 186,462-square-foot building at 1899 Pennsylvania Ave., the 363,041-square-foot structure at 425 Eye St. and the 633,908-square-foot Waterview building in Rosslyn, VA.