2055 L Street's New Tenant
Yesterday, Monument Realty and investment partner Angelo, Gordon & Co. announced that the Center for Global Development is buying the 33.5k SF 5th floor at Monument's 2055 L St. It's still being built out, but CGD--which had already leased it--pulled the trigger on a sale for an undisclosed sum. Monument's Doug Olson (snapped this morning) tells us the deal will officially close in June, with CGD expected to move in late this year. It's the second condo sale at 2055 L for Monument, after the firm sold the 7th and 8th floors to the National Restaurant Association in December. But there's more: Doug says the 6th floor, the only available space (Verizon owns the bottom four floors) is contractually committed for purchase with a non-profit.
Here's a shot of the fifth floor. Doug says Monument underwrote its purchase of 2055 L's top three floors (it then constructed the 8th floor on top) anticipating a lease-up, but there was demand in the marketplace for office condo sales. "My leasing plan completely missed the market, which keeps my record perfect, and the demand I wasn't bright enough to identify bailed us out," Doug quips. (Stay away from our March Madness bracket, Doug.) He adds that we may see more similar office condo sales, but not on a large scale: the deals require excellent locations, large floor plates, and "line-in-the-sand" pricing relative to the leasing alternative.
