Brookfield Records Another Loss on an Office Sale

Brookfield has sold yet another building at a loss.

A Brookfield fund sold the eight-story office building at 1005 North Glebe Road in Arlington, Virginia for $47 million, the Washington Business Journal reported. The deal for the 148,000-square-foot building breaks down to $318 per square foot.

The asset manager sold the Arlington Medical Center last month, but the deal only appeared in Arlington County property records recently. Brookfield did not respond to a request for comment from the publication.

The sale represented a modest loss for Brookfield. The firm acquired the 1980s-built property, then known as Fairgate at Ballston, for $50.1 million in 2021. The seller at the time was WashREIT — since rebranded to Elme Communities — which bought the property in 2012 for $52.2 million.

The property’s tenants include the nonprofit Inova Health System and Virginia Heart, a cardiovascular care provider. Procon Consulting was a previous tenant.

The buyers appear to be affiliates of Chicago-based Remedy Medical Properties and Boca Raton-based Kayne Anderson Capital Advisors. An official from the former signed a deed of trust and collateral assignment, while someone from Kayne Anderson signed state corporation filings for the ownership entity. Neither company responded to requests for comment.

Remedy used the building as part of a $73 million collateralized loan with Ally Bank.

The loss could’ve been worse. The county’s assessed value of the property is $40.4 million, well below the 2021 assessment of $55.4 million.

It’s also modest in comparison to another Brookfield sale in Manhattan. The firm recently sold a 10-story office building for $150 million to iconic photography retailer B&H Photo, sources told The Real Deal. That building went for $105 million less than what the company paid for in 2018.

— Holden Walter-Warner