Hines Lands Downtown D.C. Office Bldg. for $152.5M

Hines, the Houston-based developer, has acquired the 2100 M St. NW office building in downtown Washington, D.C., for $152.5 million, or about $500 per square foot. Prudential Real Estate Investors, on behalf of German institutional investors in U.S. Property Fund III, sold the property with a 99% occupancy rate. The eight-story building was constructed in 1969 and totals 306,663 square feet. It sits at the intersection of M St. NW, New Hampshire Ave. and 21st St., and houses major tenants such as Urban Institute, George Washington University, and Perkins+Will Inc. Prudential acquired the property in 2004 for $95 million. Cassidy & Pinkard represented the seller, while Hines utilized in-house representation. Hampton Cross of Hines will manage the property, and Richard Nelson of Hines will handle the leasing. Hines may develop an additional 100,000 square feet at the property, according to John Harned, a vice president with Hines. The Texas developer acquired the property through its U.S. value added office investment program. Hines manages or owns seven D.C.-area properties totaling 3 million square feet. For more information see: www.houstonrealtyadvisors.net