US property company BentleyForbes is selling part of Washington DC’s Watergate complex, made famous by the political scandal that led to the resignation of former President Richard Nixon, for around $100m (£72m).
BentleyForbes has appointed Savills to sell parts of the 10-acre complex, comprising: 2600 Virginia Avenue, a 200,000sq ft, prime office building; 2500 Virginia Avenue, a 66,034 sq ft retail venue; and a 314-space underground car park.
John Lyons, chief executive office of Savills, said: ‘Washington DC is one of the healthiest office markets in the country, and with government as its core industry, has a tremendous outlook, especially as the current administration expands its holdings.
‘This is a prime opportunity for savvy investors seeking best-in-class assets with global recognition. The Watergate office tower is one of the world's most prestigious buildings.’
The property for sale is more than 90 percent leased to tenants including the Saudi Arabian Cultural Mission, Saul Ewing, the Washington Opera and PNC Bank. Retail tenants include the US Postal Service, CVS Pharmacy and Safeway supermarket.
The $100m price tag reflects an initial 8% capitalization rate based on 2009 net income, said Lyons. He added that the property was subject to ‘attractive assumable financing at an initial blended rate of 5.43%’ and that financing ran until October 2015.
The 1960s-built Watergate complex comprises three luxury residential towers, two Class-A office buildings, and a 200-room hotel currently under renovation.