HSBC-Led Group Buys Washington, D.C., Office
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HSBC Alternative Investments Ltd. paid $203.4 million in debt and equity for 1625 I St., a fully leased 85,000-square-foot building about two blocks from the White House. The deal values the property at about $587 a square foot, one of the highest prices paid per square foot in Washington during the past 12 months, according to Real Capital Analytics, a New York real-estate research firm. The seller was Brookfield Properties Corp., which will retain a 10% interest and management responsibility for the building.
"Washington has been the most consistently performing market in the nation for a long time," Rick Clark, president of Brookfield's U.S. operation, said in an interview Monday. He said Brookfield is selling to switch capital from core assets into more opportunistic ventures like buying distressed property. "Any prudent asset manager doesn't buy, hold and die. They recycle capital," he says. |
