Singapore REIT Enters D.C. Market With $182M Pennsylvania Avenue Acquisition
A Singapore REIT has made its first acquisition in the D.C. market, buying an office building one block from the White House.
Manulife U.S. REIT acquired 1750 Pennsylvania Ave. NW from John Hancock Real Estate for $182M, the company announced Friday. The deal pencils to roughly $656/SF.
The 13-story, 277K SF office building was built in 1964 and renovated in the last six years. At 97.2% occupied, its largest tenants include the U.S. Treasury Department and the United Nations Foundation, each occupying over a third of the building. Its only vacancy is an 8K SF space on the sixth floor.
Along with the D.C. deal, Manulife also acquired Atlanta's 20-story Phipps Tower for $205M. Prior to these deals, the REIT's portfolio included five U.S. office buildings in Southern California, New Jersey and Atlanta worth a combined $1.3B.
The Pennsylvania Avenue deal shows the continued interest of foreign investors in the D.C. office market. In January, Spanish investor Masaveu Real Estate acquired 900 G St. NW for a record price. In the month before that deal, a Korean investor, a French investor and a German investor all acquired D.C. office buildings for over $150M.
