Brookfield Properties traded another Washington, D.C. office property at a loss, but it can take heart in knowing that it has had tougher sales in recent memory.
An affiliate of Brookfield sold the Victor Building at 750 Ninth Street NW for $153 million, the Washington Business Journal reported. That’s slightly below the $157.5 million Brookfield paid to acquire the property from the Smithsonian Institute in 2005.
The buyer of the nine-story, 350,000-square-foot building was an affiliate of Rockwood Capital, which paid roughly $440 per square foot for the property. Deutsche Pfandbriefbank AG provided Rockwood with a $113.4 million acquisition loan.
Brookfield, meanwhile, is using proceeds from the sale to pay off the balance of a $155.6 million loan it obtained for the property in 2015.
Tenants at the 1909-built property include the Smithsonian, the Blue Cross Blue Shield Association and Sargent & Lundy. It was last renovated four years ago and is located adjacent to CityCenterDC, a 2 million-square-foot complex with shops, restaurants, residential components and beyond.
The Business Journal did not immediately receive a response to a request for comment from either buyer or seller.
A couple of weeks ago, Brookfield sold an eight-story office building in Arlington, Virginia, for $47 million; the buyers appeared to be affiliates of Chicago-based Remedy Medical Properties and Boca Raton-based Kayne Anderson Capital Advisors. That was another modest loss for Brookfield, which had acquired the property in 2021 for $50.1 million.
Brookfield also recently sold a 10-story office building in Manhattan for $150 million to 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.
Rockwood is not immune to the doldrums of the office market, particularly in the D.C. area. Last year, Rockwood and Stonebridge sold a property in Bethesda, Maryland, to In-Rel Properties for $29.9 million, a lender-arranged deal that represented a 78 percent drop in value from the building’s 2019 purchase.
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