The General Services Administration has acquired the U.S. Department of Transportation’s headquarters in the District’s Navy Yard area for $760 million in what will likely be one of the largest single-asset commercial real estate deals to take place in Greater Washington this year.
The acquisition, recorded Monday with the D.C. Recorder of Deeds, came not quite four months after the federal government’s main civilian real estate arm exercised a purchase option embedded in the deal it struck more than a decade ago with the developer of the 1.9-million-square-foot building at 1200 New Jersey Ave. SE. The deal equates to about $400 per square foot.
The GSA estimates the acquisition will eliminate nearly $50 million in annual rental payments. The deal also advances its ongoing efforts to shift federal agencies from leased properties to government-owned facilities.
The agency does not plan any major renovations to the building based on a pre-purchase inspection that revealed the property…Read the full story from the Washington Business Journal.