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Case Study

DC’s 1801 K Street trades owners in record-setting deal

​​​​​​​Achieving one of the largest disposition prices ever in the greater Washington, DC office market, JLL Capital Markets brokered the sale of 1801 K Street to Mirae Asset Global Investments for $445 million, or approximately $781 per square foot, in late 2014.

Located blocks from the White House, the 569,800-square-foot office building has become one of the Washington CBD's preeminent Trophy office buildings, thanks in large part to the host of services JLL provided to Somerset Partners over 1801 K's deal cycle.

In 2009, JLL's Project and Development Services team recruited Skidmore, Owings & Merrill to lead a $100 million renovation of the asset, which included new lobbies at two entrances, as well as an impressive 200-linear-foot commissioned light sculpture by LED artist Leo Villareal. Additionally, the exterior received a new façade with an energy-efficient, all-glass curtain wall, securing the coveted LEED® Gold certification.

JLL Construction managed the scope of work through meticulous project preparation, careful design evaluation, comprehensive system analysis and materials selection – all to ensure 1801 K's long-term operating efficiency. Through seamless delivery and strong risk mitigation, the full scope of work was successfully completed after an 18-month renovation period, during which the building was more than 75 percent occupied.​

JLL’s Agency Leasing team targeted the market's historically top-tier firms, which led to leases with Federal Reserve, JLL, SRA International and Lockton Insurance.

After the building renovation, Somerset Partners engaged JLL Property Management to provide Class A building services. The group acted as the tenant liaison by coordinating tenant relocations, addressing noise concerns, providing regular project updates and facilitating conferencing needs. JLL's Move Management team also played a major role in organizing smooth transitions when temporarily or permanently relocating over 50,000 square feet of tenant space to accommodate the renovations. 

With these modifications and occupancy at 98 percent, the building was primed for sale in 2013. Somerset Partners selected JLL's Capital Markets group to market the building for sale.

As Washington, DC continues to be one of the most sought-after markets by offshore capital, JLL leveraged the International Capital Group​ to market the asset both overseas and stateside. The JLL team introduced 1801 K Street to investment professionals directly in Seoul via a private placement marketing campaign, which took the team to Korea, Hong Kong, China and Japan.

In addition, JLL Capital Markets secured $267 million in financing for the building on behalf of the new owner Mirae Asset Global Investments. MetLife provided the five-year, fixed-rate loan.

In the end, Somerset Partners achieved their goal of receiving maximum return on their investment in 1801 K by repositioning the asset from a Class B to a Class A Trophy office building.​​

1801 K's story is a testament to the strength and seamlessnes​s of JLL's integrated platform. JLL's ability to provide clients with varied services at top-notch quality throughout the investment lifecycle is a true value driver and differentiator in this industry.

View 1801 K Street case study on SlideShare

Contact JLL's integrated team in Washington, DC​​

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