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Shorenstein Sells Trophy DC Property

Broadway Real Estate Partners Wins Bidding for Washington Harbour
March 3, 2003
Broadway Real Estate Partners LLC, a commercial real estate investment firm based in Greenwich, CT, acquired Washington Harbour, a 537,259-square-foot, trophy office complex on the Potomac River waterfront in the Georgetown section of Washington, DC, from Shorenstein Co.

The $185 million acquisition - or about $344 per square foot -- is a major transaction in the nation's strongest investment sales market. The transaction was completed Monday March 3 and announced by Scott J. Lawlor, founder and CEO of Broadway Real Estate Partners.

Lehman Brothers on behalf of Broadway and its equity partners, which included an offshore institution and private investors, provided financing.

"It was a very competitive bidding process. I believe we got the transaction because we have earned a reputation for closing both very quickly and at our bid price," Lawlor said. "In fact, in this deal, we beat the timeframe and were able to close almost a month earlier then scheduled. We are very pleased with this acquisition. We have been targeting to invest in Washington DC, and believe we now have one of the best assets in the market."

Washington, DC, is currently one of the nation's strongest office markets, with structural supply and demand conditions that have enabled the District to outperform most other major metropolitan areas in the U.S. in terms of fundamentals - rents, occupancy, absorption - during the current cycle.

He added, "Aside from being in an exceptional office market, the property is 99 percent leased with less than 1 percent rollover in the next two years and almost 75 percent of the space in place until 2007. In addition, the property commands rents inline with the premier assets in the District's central business district."

Shorenstein Co. purchased the property in September of 2001 for approximately $288 per square foot.

Washington Harbour offers tenants a unique five-acre waterfront location, large floor-plates, and extensive amenities. In addition to its two office buildings, Washington Harbour comprises six restaurants, a boardwalk, a terraced plaza with fountains, and a two-level underground garage. Its open promenade walkway connects the buildings and extends from K Street to the central plaza fronting the Potomac and provides expansive views of the River and national landmarks such as the Lincoln Memorial and Kennedy Center.

Four prominent law firms comprise most of the office space, and each has expanded since becoming a tenant at the property. These firms include Swidler Berlin Shereff Friedman, Foley & Lardner, Collier Shannon Rill & Scott, and Orrick Herrington & Sutcliffe. The property's two long-standing restaurants, Sequoia Grill and Tony & Joe's have been operating at Washington Harbour since 1990 and 1987 respectively.

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