The National Association of Broadcasters has cashed out of its national headquarters building near Dupont Circle as it plans to move to a new home being built for it in the Capitol Riverfront.
The NAB has sold its long-time home at 1771 N St. NW for $31.6 million, or nearly $534 per square foot, to an affiliate of Stream Realty Partners. The sale comes about five months after CBRE Group Inc. (NYSE: CBG) began marketing the 52,000-square-foot building to prospective buyers.
While CBRE pitched the seven-story building’s potential for conversion into other uses, Stream Realty Partner Kyle Luby said he believes the building’s location and bones makes it an attractive prospect for other companies looking for new headquarters space in the District.
“Our expectation is that that we’ll likely move forward with a trophy redevelopment and keep the building as office,” Luby said. “I think the building itself is a really unique opportunity not just for office tenants but also for D.C.”
The offering attracted a range of prospective buyers, which included other owner-occupiers, investors and developers weighing the building’s conversion potential, said CBRE Executive Vice President Emanuel Fitzgerald. Stream made the best offer, had capital to seal the deal, and was willing to lease space back to NAB with enough flexibility for it to stay on until its new headquarters is ready for occupancy in late 2019 or early 2020.
Stream Realty is seeking architects for the renovation once the NAB moves out. Luby said the building is small enough, with floor plates of about 8,600 square feet, that it could be an ideal fit for small headquarter tenants. He said there’s a strong demand for trophy-quality space conducive to smaller tenants of around 10,000 square feet, a notion Stream Realty sought to tap into in successfully marketing space at 740 15th St. NW.