4201 Connecticut Avenue
Brickman acquired the fee simple interest in 4201 Connecticut Avenue, a 70,971 square foot office property with a 110 space parking garage located in the Uptown submarket of Washington, DC for $23.1 million. The six-story multi-tenant building, built in 1966, was 92% occupied by a mix of tenants at acquisition. The Property serves as a lower cost alternative to downtown Washington DC for companies seeking smaller office spaces. The Property gave the Fund an opportunity to acquire a well-located and well-leased asset at the attractive basis of $325 per square foot.
Property type: Office
Investment type: Equity
Size: 70,971 SF
Investment date: October 2014
Brickman’s purchase price of $23.1 million ($325 per square foot) was well-below comparable sales in the surrounding area. Comparable sales at the time of acquisition averaged $455 per square foot, representing a 29% discount to market.
Brickman’s business plan for the asset involves driving NOI growth by repositioning much of the space in the building for medical office use as in-place tenants vacate. At the time of acquisition, medical space in the submarket was renting for an 8% premium to traditional office.