Exelon Corp. has acquired 701 Ninth St. NW in Washington, D.C., the headquarters of its Pepco Holdings subsidiary. Brookfield Properties bought the Class A asset for $175 million.
“The strategic sale of 701 Ninth St. NW underscores Pepco Holdings’ dedication to the District and Brookfield’s disciplined method to unlocking worth for our traders,” a Brookfield spokesperson stated in an announcement offered to Industrial Property Govt.
Brookfield had bought the 10-story, 364,000-square-foot workplace constructing, also referred to as Edison Place, for roughly $169.8 million in March 2004, in keeping with CommercialEdge. Pepco Holdings had owned the 2001-completed asset earlier than the sale to a Brookfield affiliate. Exelon, one of many nation’s largest utility firms, acquired Pepco in a $6.8 billion merger in March 2016.
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A Pepco spokesperson instructed CPE the acquisition of its longtime D.C. headquarters is anticipated to supply long-term financial savings for its clients which will offset future will increase from inflation or different prices. The spokesperson additionally talked about the property serves as a central hub for Pepco groups who work throughout the District and parts of Montgomery and Prince George’s counties in Maryland.
Exelon and Pepco are additionally dedicated to the continued revitalization of the Gallery Place/Chinatown neighborhood and can proceed to make use of the Pepco Edison Place Gallery throughout the constructing to help nonprofit and community-focused occasions.
Situated in downtown D.C. between G Road NW and H Road NW, the LEED Gold-certified constructing has 14,000 sq. ft of ground-floor retail, together with the location of Zaytinya, a restaurant run by renown chef José Andrés. The mid-rise has 36,400-square-foot floorplates, in keeping with CommercialEdge.
Brookfield inclinations
The sale of Edison Place comes simply weeks after Brookfield bought 750 Ninth St. NW, also referred to as the Victor Constructing for $153 million. The agency used the sale proceeds to repay the rest of present property debt, a $155.6 million mortgage from June 2015, the Washington Enterprise Journal reported.
In August, Brookfield bought Potomac Tower, a totally leased, 20-story, 242,000-square-foot workplace tower at 1001 nineteenth St. in Rosslyn, Va., additionally within the D.C. metro workplace market, to its largest tenant for $143 million. The sale concerned two transactions—$113.8 million for the constructing and $29.2 million for the land, in keeping with WBJ. Brookfield had acquired the constructing, designed by famed architect I.M. Pei, in 2004 for $106 million.
The inclinations are a part of Brookfield’s capital allocation administration technique. It has lately been promoting a few of its properties because it appears to deploy capital towards high-performing property elsewhere in its portfolio.
In March, Brookfield bought 333 W. thirty fourth St., a 10-story, 346,728-square-foot workplace constructing in Manhattan, for $150 million. The sale value was about $105 million or 60 % decrease than the 2018 acquisition worth.
