New York-based developer Ruben Companies is offering for the first time since its completion 601 Pennsylvania Avenue, NW, North Building, a trophy office and retail property with an irreplaceable Pennsylvania Avenue location, situated midway between the White House and the US Capitol.
Ruben developed the 12-story, 193,000 square foot property, also known as Pennsylvania Plaza, in 1990 and has owned and operated the property continuously since. Pennsylvania Plaza features an exceptional credit tenant roster, with JP Morgan as the anchor tenant occupying 22% of the building. The building is 94% leased to prestigious investment-grade tenants including Cisco Systems, T-Mobile, Merck, DuPont and the National Gallery of Art. Reflective of the property’s cachet is the Fiola da Fabio Trabocchi restaurant, among the very top power-broker restaurants in Washington catering to U.S. presidents, dignitaries and top executives.
The building is situated in the amenity-rich Penn Quarter corridor within the coveted East End submarket, an ideal location for government affairs offices and lobbying departments of Fortune 500 firms. The area is known for its immediate access to power restaurants, entertainment venues, Capitol Hill, the White House and numerous influential organizations. According to data from Cushman & Wakefield, government affairs offices and lobbying departments of private sector firms pay nearly a 30% premium to average Class A office rents in Washington, DC. Also, according to Cushman & Wakefield, only one-third of commercial property along Pennsylvania Avenue is privately owned, largely on a long-term basis, making this offering a once-in-a-generation opportunity.
The building’s unique physical attributes include classical architecture; a landscaped rooftop terrace with spectacular 360-degree views featuring the Washington Monument, the US Capitol Building and the Pennsylvania Avenue corridor; a commanding and classic marble lobby; an impressive window line providing abundant natural light; multiple setbacks and private tenant terraces; efficient floorplates for single and multi-tenant configurations; a rare and expansive private driveway for executive pickup and drop off; a fully equipped fitness center; and a 203-space parking garage.
A Cushman & Wakefield team led by Bill Collins is presenting the offering to qualified global investors. The team is also pitching value creation opportunities such as upgrades to the building’s common areas and amenities as in-place tenants roll to market rents, as well as the overall improvement of the Pennsylvania Avenue corridor with the future redevelopment of the FBI headquarters and the opening of the Trump International Hotel in 4Q 2016. “After hitting the market two weeks ago, we’ve received a phenomenal response from investors around the globe, which is a testament to the asset’s exceptional location, physical qualities, investment-grade tenancy and stable cash flow,” said Mr. Collins. “We expect pricing to be in the $250 million range.”
About Ruben Companies
Founded more than fifty years ago, Ruben Companies and its affiliates are leaders in the development, ownership and management of world-class real estate, with a primary focus on New York, Washington DC and Boston. Ruben Companies has developed, and continues to own and manage, over five million square feet of Class A office space and more than 1,000 luxury residential apartments in premier corridors such as Madison Avenue in New York, Pennsylvania Avenue in Washington DC and Washington Street in Boston. Currently, Ruben Companies and Related Companies are jointly developing a signature residential and retail property in Washington DC’s thriving South Capitol neighborhood. Located on Half Street SE, steps from Nationals Park, the first phase of the development is currently under construction and will be a 383-unit apartment property with destination retail, exceptional views and unmatched amenities.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43,000 employees in more than 60 countries help investors and occupiers optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWakeon Twitter.
