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News release

Washington

Investment Sales Market Heats up in D.C. with $500 Million of Jones Lang LaSalle Closings in H1 2010; Millions More Currently in Market

Just closed Prince Street Plaza in Washington, D.C. for $17.5 Million


Washington, D.C., July 22, 2010– The tremendous demand for core and opportunistic product in the white-hot Washington, D.C. market, is pushing Jones Lang LaSalle’s Investment Sales team into remarkable territory after completing nearly $500 million in office, retail and land sales in the first half of 2010 alone, with another slew of offerings currently in the market.  This stands in marked contrast to 2009 in which volumes were well off the current level—with just three transactions closed last year, for a total of $123 million.

Leading the Jones Lang LaSalle team on these transactions were Managing Directors John Kevill and Collins Ege, Senior Vice President Jim Molloy, Vice President Sean McDermott and Associates Bradley Allen and Jason DeWitt.

“We have seen an extraordinary turnaround in the D.C. investment sales market as the limited supply of core-plus product is generating a true ‘scarcity premium,’” said John Kevill, Managing Director of Jones Lang LaSalle.  “We are finding the most success tapping capital sources from domestic institutional investors who are now dominating the market, while the return of debt financing should improve the ability of local and private investors to compete as well.”

Steve Collins, Managing Director and head of the firm’s International Capital Group for the Americas, added his perspective on why the capital is so appealing to investors, “Core product in this market is fetching high numbers with low cap rates and international investors are definitely taking notice.  There’s a great deal of pent-up demand from buyers in countries such as Germany, the United Kingdom, Korea and Japan—investors who never got caught up in the CMBS difficulties who are now looking for stable, well-located assets such as these in D.C.”

Jones Lang LaSalle recently added another transaction to its totals with the sale of Prince Street Plaza for a private seller.  TA Associates purchased the 52,809-square-foot office building for $17.5 million.  Located at the corner of Prince and South Peyton in the heart of historic Old Town Alexandria, the property is 92 percent leased to a diverse tenant base.

In the month of June, the D.C. team completed an additional five transactions totalling $332 million in sales including:
  • The sale of the grocery-anchored retail center known as Plaza America Retail in Reston, Virginia to ARC/Angelo Gordon for $49 million.

  • Two land sales including a residential site in Bethesda, Maryland called Monty Land for $20 million to Bainbridge and another called Club on Quincy for $4.5 million to Crimson Partners.

  • A $61 million 363 Stalking Horse loan sale backed by a retail offering in the Georgetown submarket.

  • The sale of the iconic D.C. building known as Evening Star for KanAm Grund KAG.  TIAA-CREF, also a tenant in the building, purchased the Trophy asset.

In addition, the team is currently marketing several Class A and trophy assets in the region including the trophy asset known as 1899 Pennsylvania for Frankfurt-based KanAm Grund Kapitalanlagegesellschaft mbH.  The 186,462-square-foot property, located on the main artery of the city’s Central Business District just three blocks from the White House, will likely fetch in excess of $150 million.  In addition, the team is also marketing 3190 Fairview Park in Falls Church, a trophy-quality suburban property that is expected to bring upwards of $75 million, as well as two properties leased to the Social Security Administration (GSA) near Baltimore, MD in close proximity to the agency’s headquarters.

About Jones Lang LaSalle Capital Markets

Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for its clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In the last three years, Jones Lang LaSalle Capital Markets completed more than $143 billion transactions globally. The firm’s Capital Markets team comprises approximately 1,500 specialists, operating in 180 major markets worldwide. 

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2009 global revenue of $2.5 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.6 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with approximately $40 billion of assets under management. For further information, please visit our Web site, www.joneslanglasalle.com