News ReleasesCommerz Real enters Washington with "1900 N Street

Commerz Real has acquired the office property “1900 N Street” in Washington, D.C. for its open-ended real estate fund hausInvest. It is located in the so-called “Golden Triangle”, the heart of the Washington Central Business District. The seller of the property completed in 2019 with 25,500 square metres of rental space is a joint venture of the local project developer JBG Smith and the Canadian pension fund Canada Pension Plan Investment Board (CPP Investments). Non-disclosure was agreed on the purchase price.

“A successful entry into the Washington market with a Trophy real estate,” says Maja Procz, Global Head of Transactions at Commerz Real. “1900 N Street” is characterised by its striking architecture, which makes it stand out in its corner location. “The axis of view in the corner offices and the special view from the roof terrace make up the special character of the building,” explains Procz. According to Commerz Real, the striking red steel beams and the pillarless, three-storey foyer also ensure a strong presence in the cityscape. KPF Kohn Pedersen Fox, one of the world’s leading architectural firms, is responsible for this appearance and is known for the One Vanderbilt and Hudson Yards in New York City and The Scalpel in London, among others.

“1900 N Street” is currently leased to 82 percent of four office tenants and two caterers. These include the headquarters of environmental and spatial law firm Beveridge & Diamond, the mid-Atlantic headquarters of global real estate service provider CBRE, and a branch of Goodwin Procter LLP, one of the world’s leading law firms. Among other things, there is a fitness centre, a spacious roof terrace with indoor and outdoor event and co-working areas including a catering kitchen. The property also has an underground car park with 175 car parking spaces. The office complex has been awarded the “LEED” sustainability certificate in gold.

“Due to the excellent urban location, we see very good value-added potential here by renting out the remaining areas,” says Procz. According to relevant reports, the Washington office market is on a recovery course and rental figures reached pre-Covid levels for the first time in the first quarter of 2022. In addition, many authorities, government-related organisations and law firms on the office market in Washington, DC would ensure a very crisis-resistant tenant structure. According to the “US Bureau of Labour Statistics”, more than 40 percent of jobs are recession-resistant, the highest figure in the USA.

During the transaction, Commerz Real was advised by Willkie Farr & Gallagher (legal), Bleddyn AM (commercial), Arcadis (technical) and PwC (tax).