ASB Real Estate Investments didn’t set out to break any records, only to test the market.
It wound up doing both with its sale of 900 G St. NW in January 2018 for $144 million, or a record-setting $1,278 per square foot, to an affiliate of Masaveu Real Estate U.S., a subsidiary of Corporacion Masaveu of Spain. The sale allowed the Bethesda-based real estate investment firm to eliminate its exposure to potential vacancies in the future and to redeploy sale proceeds into other acquisitions in the District.
That was an unforeseen outcome for when ASB partnered with MRP Realty to develop the nine-story building by Ninth and G streets NW as a long-term investment. ASB acquired MRP’s stake in the property in 2016, but trouble started to grip D.C.’s office market in the form of static rents, rising concessions and increasing vacancy rates. Developers had delivered millions of square feet of new office space over a few years, with more on the way, and that was starting to create challenging…Read the full story from the Washington Business Journal.