Brookfield Asset Management is selling another office building in Washington, D.C.
An affiliate of the company sold the Edison Place building in the nation’s capital for $175 million, according to property records reported by the Washington Business Journal. The buyer of the property at 701 Ninth Street NW was an affiliate of Exelon, a utility company.
The deal works out to about $481 per square foot.
The property serves as the local headquarters for Pepco Holdings, a subsidiary of Exelon. The former owner of the 364,000-square-foot building was Potomac Capital Investment, a subsidiary of Pepco, which sold the building to the Brookfield affiliate for about $170 million in 2004.
The recent sale rendered Pepco’s lease at the 2001-built property obsolete. Tenants include Zaytinya, a José Andrés restaurant on the ground floor.
“The strategic sale of 701 Ninth Street NW underscores Pepco Holdings’ commitment to the District and Brookfield’s disciplined approach to unlocking value for our investors,” a Brookfield spokesperson told the Commercial Observer.
Brookfield’s “approach to unlocking value” appears to involve selling plenty of office properties, especially around D.C.
Brookfield last month sold an office building right down the street to Rockwood Capital for $153 million. The sale of 750 Ninth Street NW came in slightly below what Brookfield paid to acquire the property from the Smithsonian Institute 20 years ago.
The investment giant that same month sold an eight-story office building in Arlington, Virginia, for $47 million; the buyers appear to be affiliates of Chicago-based Remedy Medical Properties and Boca Raton-based Kayne Anderson Capital Advisors. That represented another modest loss for Brookfield, which 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 property went for $105 million less than what the company paid for it in 2018.
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