4530 Wisconsin Ave Washington, dc

Background:

4530 Wisconsin Avenue is a 50,000 RSF office and retail building located in the Uptown submarket adjacent to the Tenley Metro.  The building was developed and built by a local partnership in 1988 and was leased and managed by Donohoe Real Estate Services since it delivered.  Notwithstanding its long history with the asset, ownership decided to rotate its investment focus away from the office submarket and decided to sell the property.

Challenge:

In addition to some deferred renovations, a difficult leasing situation resulted in four vacant floors and more than 35,000 RSF coming available just as the decision to sell the property was made.  Donohoe Real Estate Services initiated an extensive marketing campaign and broker outreach program and within several months had finalized five (5) lease transactions, backfilling all of the building vacancy.  These transactions resulted in approximately 18% greater NOI than the building’s previous-years’ results and stabilized the property ahead of ownership’s decision to move forward with its plan to market the building for sale.

RESULT:

DRES’ sales team produced an offering memorandum, went to market with the asset, and within sixty (60) days had procured seven qualified offers.  After a second round of bids, the owner selected a purchaser and the property went under due diligence.  During this phase of the transaction DRES oversaw new tenant construction and move-in, as well as remediation of numerous building deficiencies, such that the transaction closed ahead of the anticipated transfer date.  All told, on behalf of the seller, Donohoe Real Estate Services oversaw approximately $30M of lease and sales transactions within a 1 ½-year period.