Rockwood Capital, LLC, announced today it has sold the Watergate Office Building at 2600 Virginia Avenue in Washington, D.C to Brian Friedman of Friedman Capital.
The 215,520 square foot, 11 story office tower is located on the Potomac Riverfront in Washington, D.C.’s West End, a core downtown submarket known for its luxurious hotels, high-end restaurants and luxury residential real estate. The building, the site of the 1972 break in at the Democratic National Committee headquarters, is famous for its role in the Watergate scandal that ultimately led to the resignation of President Richard M. Nixon in 1974.
The property is currently 90 percent leased, and its tenants include the National Trust for Historic Preservation and George Washington University. Rockwood purchased the building in December 2016.
“We have been pleased with the quality of the sale process, which reflects the underlying value of the Watergate and the dynamic D.C. market,” said Richard Kramer, Director of Acquisitions at Rockwood. “The investment in the Watergate is consistent with our strategy of investing in well-located real estate that provides amenities designed to help today’s tenants attract and retain talent at a discounted rent to trophy buildings. We believe these investments outperform in the long term and the next owners will benefit from continued upside potential offered by this historic building.”
The selling group was represented by Newmark Knight Frank’s Executive Managing Directors Jud Ryan and James Cassidy and Vice President Cliff Cummings facilitated the sale. “The iconic nature of the Watergate Office Building generated global appeal and it was a pleasure to market such a notable piece of American History.” said NKF Executive Managing Director Jud Ryan. “The buyer is gaining an incredible piece of real estate poised to perform very well in an already robust market.”
Friedman Capital is a D.C. based, family-owned firm which extensive experience developing in the area – from the LINE Hotel to the Admo Heights. The firm is planning to add high-end lifestyle options to the building such as a sports book, restaurants, urban athletic club, co-working office, and a Nixon museum.
The Watergate Office Building was built in 1967 as part of the 10-acre, six-building Watergate complex that also includes three luxury residential buildings, the Watergate Hotel, and the 600 New Hampshire Avenue office building, all built around a central retail plaza. Designed by Italian architect Luigi Moretti, the project was the first mixed-use development in the District and was, at the time, the largest privately-funded urban renewal project in the history of Washington, D.C.
“The Watergate Office Building’s sustained leasing velocity, driven by ongoing strategic improvements by Rockwood, gave the property an enviable market position,” James Cassidy, Executive Managing Director, NKF. The transfer of ownership will only ensure the continued success of this illustrious American building.”
About Rockwood Capital
Rockwood Capital, LLC (“Rockwood”) is a real estate investment management firm founded in 1995 that provides equity capital combined with real estate operating expertise for the repositioning, recapitalization, development and redevelopment of residential, office, research and development, retail and hotel space in key markets throughout the United States. Rockwood and its principals have invested on behalf of their clients approximately $30.7 billion of real estate through commingled funds and separate accounts. Rockwood is a 73-person organization with offices in New York, NY, San Francisco, CA, and Los Angeles, CA that manages a portfolio of approximately $4.2 billion of net equity value in approximately $8.4 billion of gross real estate value as of 6/30/2019. Rockwood’s investors include sovereign wealth funds, public and private pension funds, endowments, foundations, insurance companies, funds of funds, high net worth individuals and family offices.
About Newmark Knight Frank
Newmark Knight Frank, operated by Newmark Group, Inc. (NASDAQ: NMRK), is one of the world's leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF's 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy
