Washington REIT to acquire 600 New Hampshire Avenue, NW in Washington, DC
Washington REIT plans to acquire 600 New Hampshire Avenue, NW a 309,000 square foot iconic office building on the Potomac riverfront in Washington, DC for approximately $135 million in a transaction that is structured to include the issuance of units for a portion of the purchase price.
Located within the internationally recognized Watergate Complex and 0.3 miles from Metro’s Foggy Bottom station with instant commuter access to Interstate 66 and Rock Creek Parkway, the 97% leased 600 New Hampshire Avenue, NW, commonly known as Watergate 600, is a twelve-story office building with panoramic river and monument views.
“The acquisition of Watergate 600 exemplifies Washington REIT’s office strategy of acquiring high-quality, urban, metrocentric assets that further increase our footprint within prime locations in the District,” said Paul T. McDermott, President and Chief Executive Officer of Washington REIT.
“Following the company’s value-add success at 1775 Eye Street, which was acquired and renovated in 2014, 600 New Hampshire provides Washington REIT with another excellent opportunity to create value for our shareholders through effective repositioning and leasing.”
Originally delivered in 1972 and extensively renovated in 1997, the asset is undergoing a second round of significant renovations that Washington REIT will refine and complete. Designed to deliver a Class-A status, the scope of the renovations includes modernizing and expanding the lobby and rooftop, a new state-of-the-art fitness facility and conference center, as well as major systems upgrades.
The asset will provide Washington REIT the opportunity to lease up approximately 90,000 square feet set to expire at year-end 2018, while remaining anchored by the headquarters of The Atlantic Media Company, a nationally renowned media conglomerate occupying 140,000 square feet under a longterm lease through October 2027.
The company expects to close the acquisition in early April, subject to satisfaction of certain closing conditions, and is now providing 2017 acquisition and disposition assumptions, which reflect the above-mentioned planned acquisition and assume asset dispositions of $70 to $100 million. Based upon the above acquisition and disposition assumptions for 2017, Washington REIT is raising the bottom and top ends of its 2017 Core FFO(1) guidance range by two cents to $1.76 to $1.84 from $1.74 to $1.82 per fully diluted share.
Source: Washington REIT