Tishman Speyer Sells K Street Office Building For $140M
Tishman Speyer has sold a downtown D.C. office building seven years after completing a major renovation and expansion.
The New York-based real estate firm sold 2000 K St. NW, near the Farragut West Metro station, for $140.2M, according to documents filed with the D.C. Recorder of Deeds Tuesday.
Global office investor Spear Street Capital purchased the 233K SF property, which Tishman had owned since the end of 2013.
The buyer obtained a $103M loan from Frankfurt, Germany-based DekaBank, deed records show. Spear Street confirmed the acquisition but declined to comment further.
Tishman paid $89M when it acquired the 1980s-era building in December 2013 with plans to undertake a renovation. The cost of renovation was $65M, Washington Business Journal reported, leaving Tishman Speyer with a net loss on the sale.
Tishman completed its renovation in 2017. It added four stories and a rooftop terrace to the eight-story structure, replaced the granite exterior with an all-glass facade and renovated the lobby.
“We are pleased to have completed the sale of 2000 K Street to Spear Street Capital and are proud of what we achieved at the asset,” a Tishman spokesperson told Bisnow in an email.
Before the renovation, 2000 K had one of the largest blocks of available space in the D.C. office market, with 212K SF available in the summer of 2016.
The building is now 91% leased, according to CoStar's property database.
Its tenants include Ankura Consulting Group, DCI Group and law firms Kramer Levin and Stein Mitchell Beato & Missner, all of which each have slightly more than 20K SF. AECOM leases 12,500 SF, and Eastdil Secured leases 9,800 SF. TD Bank is on the ground floor with 8K SF.
In the D.C. market, Spear Street Capital also owns 1700 Pennsylvania Ave. NW, a 208K SF property next to the White House, and 55 M St. SE, a 268K SF Navy Yard office building down the street from Nationals Park, according to its website.
UPDATE, JULY 16, 6 P.M. ET: This article has been updated to include the building's renovation cost.
