An MC Real Estate partnership closed last week on its $106 million acquisition of a fully leased office building in Washington’s East End submarket.
The New York firm, in conjunction with an unidentified offshore family office, paid $1,116/sf for the 95,000-sf building, which has a weighted average remaining lease term of about 10 years. Eastdil Secured brokered the deal on behalf of Douglas Development of Washington.
The property, at 1000 F Street NW, was completed in 2017 with trophy-level finishes. Douglas built a 10-story glass-clad office building around a historic two-story brick building. It includes private balconies and a rooftop terrace.
Tenants in the office space include First Data, McDonald’s and Tyson Foods. There’s about 7,000-sf of street-level retail space, anchored by Sephora.
MC Real Estate was founded last year by New York real estate veterans Steve Grant and Andy Nathan — both alumni of Tishman Speyer. Grant is managing principal and co-founder of ClearRock Properties of New York, and Nathan is the founder and chief executive of Meritage Properties of Scarsdale, N.Y. Both firms are in the final stages of winding down their operations.
The duo is currently working with domestic and foreign capital partners, including wealthy families and institutional shops. They focus primarily on office properties in New York, Boston and Washington. Investment profiles run the gamut from core to high-yield. “We see lots of opportunities in 2021 for both core and coreplus transactions and, increasingly, in value-add opportunities,” Grant said.