WASHINGTON, July 8, 2019 /PRNewswire/ -- Earlier today
Akridge announced the sale of 1701 Rhode Island to an entity
affilliated with EXAN Capital for $119
million, with a net recorded price of $105.7 million. The sale represents the
culmination of a successful business plan for the property. Akridge
and its partner, Alcion Ventures, L.P., first purchased the YMCA
National Capital building in March
2016, when the YMCA decided to close its location there.
After securing historic preservation and zoning approvals, Akridge
began an extensive redevelopment project to transform the former
YMCA into a trophy office building. While the project was under
construction, Akridge negotiated a lease with the coworking market
leader, WeWork, for the entire building. In February 2019, the building delivered fully
leased to WeWork. Within two months, Akridge entered into an
agreement to sell the property.
Designed by Hickok Cole Architects, 1701 Rhode Island is a
freestanding project with a unique copper façade, floor-to-ceiling
glass, and an impressive landscaped entry plaza. The building's
design respects the historic elements of the neighborhood while
providing an elegant new neighborhood landmark. Its upper
floors feature sweeping views of Scott Circle and Connecticut
Avenue. 1701 Rhode Island's design has already earned accolades;
earlier this year, the American Institute of Architects Northern
Virginia Chapter awarded the project a 2019 Award of Merit in
Commercial Architecture.
The modern facility boasts a two-story lobby, as well as a
pocket park, roofdecks on the penthouse and seventh floor, and a
landscaped, rooftop terrace.The building is ideally located in the
Central Business District, directly across the street from
Akridge's award winning 1200 Seventeenth Street project, and just
steps away from the historic St. Matthew's Cathedral. In June, 1701
Rhode Island also received its LEED Platinum Core & Shell
certification.
"The sale of this building is a testament to its striking design
and the successful execution of the redevelopment," said
David Tuchmann, Vice President of
Development at Akridge.
"1701 is emblematic of Alcion's value creation thesis," said
Eugene DelFavero, CFO and Partner at
Alcion Ventures. "Through partnering with best-in-class partners
like Akridge, we were able to work together to transform an old
YMCA gymnasium into a fully leased, trophy quality office building
with an outstanding and contemporary design. We are proud of the
team's execution and excited about the sale of the asset to an
entity affiliated with EXAN Capital."
The buyer's long-term investment strategy is one of wealth
preservation. EXAN Capital will remain as the asset manager for
this investment.
Collins Ege, Sean McDermott,
Nicholas Pappas, and Nick Carpenter of Eastdil Secured represented
Akridge and Alcion for the sale to EXAN Capital. For the lease with
WeWork, JLL's Zach Boroson,
Andy O'Brien, and Greg Lubar represented WeWork, while Akridge's
Wil Pace, McKay Elliott, Ben
Meisel, and Tim McCarty of
Akridge provided landlord representation for the property.
Whiting-Turner Contracting Company was the general contractor.
About Akridge
Akridge is a comprehensive real estate
services company that has invested in the Washington Metropolitan area for over four
decades. It provides acquisitions, design and construction
management, development, finance and asset management, leasing, and
property management services. For over forty years, the company has
acquired, developed, or entitled more than 20.6 million square feet
of office, industrial flex, residential, retail, and entertainment
space. Akridge has another 10 million square feet in its active
pipeline, currently manages approximately 3.3 million square feet,
and has a portfolio with an estimated value of over $2.1 billion. Notable projects include the
1-million-square-foot Gallery Place, the internationally recognized
Homer Building, and the 3-million-square-foot Burnham Place air
rights development project at Union Station. For more information
please visit www.akridge.com.
About Alcion Ventures, L.P.
Founded in 2005, Alcion
Ventures is a real estate investment manager with extensive
experience generating risk-adjusted returns for institutional
investors through the active repositioning of assets across
property types. Alcion's senior team have worked together for
almost two decades resulting in a disciplined, thesis-driven
investment strategy that leverages a deep network of relationships
and targets seven major North American cities. Based in
Boston, Alcion invests on behalf
of major U.S. and international institutional investors including
public and private pensions, endowment and foundations and high net
worth individuals. For more information, please visit
www.alcionventures.com.
About EXAN Capital
EXAN Capital is a Real Estate
Investment Firm with an exclusive focus on commercial properties.
Its multiple capital sources stem from private and institutional
relations throughout Latin America
and Europe.
Since 2014 EXAN has invested over $2
billion, through different capital sources, in New York, Florida, Texas, Massachusetts, Illinois, Washington
D.C and Virginia.
Furthermore, EXAN currently has $1.35
billion in Assets under Management (AUM) with over 3.3
million square feet of net rentable area. For more information
please visit www.exancapital.com.
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SOURCE Akridge