CBRE Represents JBG SMITH in the Sale of 1900 N Street Office Building

CBRE supported the sale of an approximately 269,000-square-foot trophy office building located at 1900 N Street in Washington, D.C. German-based Commerz Real AG purchased the property for an undisclosed price.

CBRE’s Tommy Cleaver, Stuart Kenny, and Dan Grimes represented seller JBG SMITH in the transaction.

“The completion of this transaction during such unpredictable times is a testament to the world-class environment JBG SMITH delivered at 1900 N – the type of environment organizations and their employees want to spend time in as they work and grow,” says CBRE Executive Vice President Tommy Cleaver. “It is also evidence of global confidence in DC. Commerz is a top tier sponsor that really does their homework – this acquisition illustrates conviction in the resiliency of our marketplace.”

“We thank the CBRE team and Commerz Real AG for their effort in bringing this transaction to culmination,” says David Ritchey, EVP of Commercial Leasing and Asset Management at JBG SMITH. “We’re excited to maintain our role as property manager and leasing agent at 1900 N as the building continues to thrive under new ownership.”

The building is 82% leased to a diverse group of industry-leading organizations, including Goodwin Proctor and Beverage & Diamond law firms, as well as CBRE’s Washington, D.C. office. The property is considered a top five Trophy office asset in D.C.’s central business district.

Designed by internationally renowned KPF architects, 1900 N’s statement design features a triple-height lobby, superior window line, and world-class amenity space. These advantages combine to create a highly sought-after environment and offered investors the opportunity to grow base yield by capitalizing on the “flight to quality” dynamics dominating the current office market.

According to CBRE’s Q1 2022 Washington DC Office report, the office market may be emerging from the worst of pandemic impact and in the beginning stages of recovery. Despite the January peak of the Omicron variant surge, market fundamentals held steady during the first quarter and remained consistent with Q4 2021 levels, recording its second consecutive quarter of positive net absorption, albeit minimal at 47,000 sq. ft. Overall vacancy stayed flat over the prior quarter at 18.4%.
 
CBRE’s 2022 U.S. Investor Intentions Survey reveals strong investor sentiment despite concerns about inflation, interest rates and the COVID pandemic. Although geopolitical uncertainty may weigh on investment volume in 2022, CBRE expects the annual total will approach the record $746 billion in 2021, thanks to continued strength in real estate fundamentals and an abundance of capital targeting real estate.