Carr Properties has sold another of its Washington, D.C. office buildings as part of its ongoing portfolio reorganization.
The prominent local landlord sold the property at 901 K St. NW to Shorenstein for $84.3 million, according to documents filed with the D.C. Recorder of Deeds. Carr Properties originally developed the 219,000-square-foot building, located near the convention center, in 2009 and subsequently renovated it in 2021. Its current tenants include Baker Donelson; Seward & Kissel; Unite Here Local 25; and Microsoft.
“Carr Properties is pleased to have completed the transaction of 901 K Street with Shorenstein,” a Carr spokesperson said. “We are also honored to have been retained to provide property management services and the opportunity to uphold our signature Carr experience, prioritizing best-in-class hospitality and service for our customers.”
Additionally, the new owner secured a $74.3 million loan from two AllianceBernstein debt funds. Notably, $53 million of that amount is specifically allocated for the office building acquisition.
According to its website, 901 K St. NW marks Shorenstein’s first acquisition in Washington, D.C. in nearly two decades, and it’s currently the only property that the San Francisco-based company owns in the capital. Prior to 2007, the company had been a lot more active in the D.C. office market, previously purchasing and selling five other properties through various funds. Past holdings included Hamilton Square near the White House, the Commonwealth building at 1625 K St. NW and the extensive Washington Harbour complex in Georgetown.
The property at 901 K St. NW represents the third office property in the D.C. area that Carr Properties has divested in recent months. In late April, the company transferred its interest in 1152 15th St. NW, an office building spanning 394,000 square feet that’s adjacent to Midtown Center. Then, in early May, Carr sold a Bethesda, Md., office building measuring 228,000 square feet for $35 million.
Carr Properties’ portfolio restructuring is taking place amidst a broader transformation of its ownership structure: A fund managed by J.P. Morgan Asset Management (one of Carr’s significant investors) has signaled its intention to sell its 35.5% stake in the company in exchange for three of the properties contained in Carr’s portfolio.
Furthermore, records show that Carr has engaged in the sale of two properties for a combined total of $120 million — a figure that corresponds to the combined sales prices of the Bethesda and 901 K St. properties. According to filings, Carr is also in the process of recapitalizing three additional properties. And, last month, the company and its partner, National Real Estate Advisors, refinanced the debt on their 1-million-square-foot One Congress office building in Boston for $650 million.
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