Brookfield Properties Corp. sold an eight-story Washington office building for $216 million as values increase in desirable investment markets.
The property, at 1225 Connecticut Ave. NW, was acquired by the World Bank, which has occupied all 240,000 square feet (23,000 square meters) of the building since 2008, when a $32 million renovation was completed, New York-based Brookfield said today in a statement.
“In keeping with our capital recycling strategy, we will be proactive in seeking similar opportunities to create value within the D.C. market,” Dennis Friedrich, chief executive officer of Brookfield’s U.S. commercial operations, said in the statement. The company has owned the building, once part of Trizec Properties Inc.’s portfolio, since 2006.
Demand for the best buildings in major markets pushed up the Moody’s/REAL Commercial Property Price Index 0.3 percent in September from a year earlier and 4.3 percent from August. U.S. property deals probably will double next year and may account for almost a quarter of global transactions, according to New York-based research company Real Capital Analytics Inc.
New York and Washington are the strongest U.S. investment markets, Kenneth Rosen, chairman of Berkeley, California-based Rosen Real Estate Securities LLC, said at a Nov. 22 conference. The overall U.S. office market may be slowed as firms try to lease unoccupied space known as “shadow inventory,” about 3 percent to 5 percent of total business leases, he said.
Brookfield announced the building sale after the close of regular U.S. trading. The company’s shares rose 26 cents, or 1.6 percent, to $17.01 today in New York Stock Exchange composite trading. The shares have gained 40 percent this year.