Kaiser Permanente, a health-care company that was already leasing 200,000 square feet at Station Place II, exercised its right to purchase the 507,237-square-foot property. According to public records, the building traded for nearly $198 million.
In a partnership with Fisher Brothers, Property Group Partners developed the 10-story office asset at 700 Second St. NE in 2009. The building’s floorplates range from 32,000 to 55,000 square feet. The space was designed by Kevin Roche John Dinkeloo and Associates and includes a fitness facility, lobby, landscaped plazas, outside seating areas, as well as a three-story below-grade parking garage with 307 spaces for cars and 38 spaces for bicycles. The property also achieved LEED Silver certification.
Kaiser Permanente’s Capitol Hill Medical Center has been occupying space at 700 Second St. NE since 2011. However, the office building’s other tenants, including The American Chemistry Council and the Securities and Exchange Commission, have announced that they will not be renewing their leases, the Washington Business Journal reported.
The federal agency has also leased space at the other buildings within the Station Place complex that 700 Second St. NE is part of. The 1.6 million-square-foot campus also includes the 600 Second St. building that offers 364,000 square feet, and the 100 F St. building that totals 705,000 square feet. Station Place provides residents quick access to the U.S. Capitol; it is adjacent to Union Station and across the street from the Thurgood Marshall Federal Judiciary Building.
A legacy of first-class office buildings
While Property Group Partners’ current portfolio includes the Station Place buildings, the New York City-based company has developed, owned or managed several Class A office buildings throughout North America and Europe. Its legacy portfolio includes several properties in Washington, D.C., but also in New York, California, Connecticut, Florida, Illinois, Oregon, Wyoming, Canada, France and the U.K.
In 2021, the company sold 860 Washington, a 108,733-square-foot office building in New York City’s Greenwich Village neighborhood, for $232 million. Property Group Partners developed the asset in 2015, alongside Romanoff Equities, eventually landing SoftBank and Tesla as tenants.
In the simplest form, a ground lease is a long-term net lease (usually 49 years or 99 years) of land including any improvements on the said land. Assets that can be subject to a ground lease include but are not limited to, vacant land, office buildings, and large residential buildings.
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Read MoreFeatured, Investment, Mid-Atlantic, News, Office, Washington D.C., Kaiser Permanente, Property Group Partners Commercial Property ExecutiveKaiser Permanente, one of the property’s long-time tenants, has acquired the asset.
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