SSH Real Estate

The Reporters Building


Location

300 7th Street, Washington, D.C., SW

Size

143,414 SF Class B office building

Purchase Date

November, 2006

Purchase Price

$59,000,000 ($411 per SF)

ACQUISITION

SSH Real Estate and Young Capital, in a joint venture with New York-based JOSS Realty Partners acquired the 143,414 square foot Class B, eight-story Reporters Building from a Dutch Investment Partnership. The building occupies an entire block in the Southwest submarket of Washington, D.C. and is bounded by Virginia Avenue to the North, D Street to the South and 6th and 7th Streets to East and West respectively. The building is located in the center of the Southwest submarket, which is dominated by government tenancy – six government agency headquarters are located within a five-block radius.

EXECUTION

The United States Department of Agriculture (USDA) has occupied 98% of the building since December of 1997. The USDA lease was scheduled to expire at the end of November 2007. After acquiring the building, we were able to negotiate a long-term extension of the USDA lease, which maximized the risk-adjusted return for investors. The Reporters Building has significant redevelopment potential, allowing for 379,260 buildable square feet, which is 235,847 square feet greater than the

existing building.

RESULTS

After negotiating and executing the long-term extension of the USDA, the building is functioning as a 100% leased stabilized asset. The current strategy of the partnership is to hold the property for the long-term to fully realize the redevelopment upside.

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