Keeping Up the Pace

Release Date: Friday, December 30th 2011

740 15th St, NW

A few Downtown properties exchanged hands before the end of the year, proving the commercial office building market is still vibrant. The John Buck Co. of Chicago purchased the American Bar Association’s (ABA) longtime headquarters at 740 15th Street for $69 million. ABA, which occupies only 40% of the building’s 175,000 square feet (SF), will relocate to smaller space, although it has the option to lease space at its headquarters through August 31, 2013. Other building tenants include the US Small Business Administration and the World Justice Project, all of whom will likely benefit from John Buck’s plans to renovate the property, which the ABA acquired in 1994.

Just blocks away, Chevy Chase-based Zuckerman-Gravely Development, Inc. snatched up the 12-story office building at 1400 Eye Street from Joss Realty Partners LLC and GE Capital for nearly $58.5 million. The 175,127 SF building overlooks Franklin Park and is located above the McPherson Square Metro. It was renovated for $10 million in 2009. Current tenants include the Campaign for Tobacco Free Kids, the One Campaign, both the DC and federal governments, as well as first-floor retailers Five Guys Burgers and Fries and Opera Ultra Lounge.

In addition, Vornado Realty Trust upped its interest in 1399 New York Avenue (also known as the Executive Tower), becoming the 130,000 SF Class A trophy office building’s full owner. The New York-based real estate investment trust paid about $104 million to acquire the 97.5% interest that it did not already own.