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Washington Harbour Waterfront Complex Marks Biggest D.C. Sale This Year

Washington Capitals' Stanley Cup Celebration Site Sells to Eyal Ofer’s Global Holdings Group for $415 Million
July 31, 2018
Principal Financial Group and the National Pension Service of Korea sold the Waterfront Harbour on Georgetown's waterfront in a deal that registers as the largest sale in the Washington, D.C., market this year.

Global Holdings Group, a real estate holding conglomerate led by Monaco-based Israeli billionaire Eyal Ofer, paid $415 million for the 562,105-square-foot mixed-use complex roughly five months after the site was listed for sale. The property is comprised of two freestanding mid-rise office buildings and a retail component that includes bars, restaurants and a 12,000-square-foot ice skating rink.

In 2011, the Washington Harbour was significantly damaged after heavy rain and a high tide flooded the Potomac River. Failure to activate the floodgates dumped up to 12 feet of water on the Harbour, flooding the site and causing millions in property damage to the popular summer tourist area. D.C.'s MRP Realty, the owner of Washington Harbour at the time, would later be hit with a $5 million class action lawsuit by businesses and employees at the Harbour for loss of income due to MRP's failure to raise the floodgates in time, a lawsuit that was later dismissed.

It took two years for MRP to complete a $50 million restoration of the Washington Harbour, which included the addition of a fountain that made national headlines last month after Alex Ovechkin and his teammates were filmed jumping in shirtless and surrounded by fans as part of a booze-filled, weeks-long celebration of the Washington Capitals' Stanley Cup win in early June. MRP Realty and joint venture partner Rockpoint Group would go on to sell the Harbour later that year to Principal Financial Group and the National Pension Service of Korea for $373 million.

Designed by local architect Arthur Cotton Moore, whose works include Canal Square in Georgetown and the renovation of the Old Post Office building on Pennsylvania Avenue now home to the Trump International Hotel Washington, D.C., the Washington Harbour today is 98 percent leased to 31 tenants including the law firms of Foley & Lardner and Kelley Drye & Warren, communications and advertising firm GMMB Inc. and digital health engagement solutions provider, Rally Health.

The waterfront site is also home to several upscale restaurants including Michelin award winners Fabio and Maria Trabocchi's high-end seafood restaurant Fiola Mare, American eatery Farmer Fishers Bakers, longtime seafood establishment Sequoia and Thai restaurant Bangkok Joe's. Popular hangouts Tony & Joe’s Seafood Place and Nick’s Riverside Grill round out the retail component.

The acquisition of Washington Harbour marks the second investment in D.C. for Global Holdings Group, which paid $82 million last March to acquire the 188-room Courtyard Marriott at 900 F St. NW in the city's East End. The company owns more than 10 million square feet of real estate and roughly 2,500 hotel rooms, primarily in New York City.

For the record:

Stephen Conley, Jim Meisel, Andrew Weir, Matt Nicholson and Dave Baker of HFF's investment advisory team in Washington, D.C., backed by CEO Mark Gibson, HFF’s national co-head of investment advisory Manny de Zárraga and HFF’s global capital team including Dan Cashdan, Riaz Cassum, Coleman Benedict and Gerry Rohm, represented the selling venture in negotiations. Simone Investment and Hana Alternative Asset Management acted as the managing members of the South Korean consortium.

Please see CoStar Comp #4458060 for more information on the transaction.
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