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News release

Washington

Jones Lang LaSalle Markets Long-Term Ground Lease for Sale in Washington, D.C.’s CBD

Purchaser of the first mortgage loan will acquire the fee simple title to the property at closing


WASHINGTON, D.C. Nov. 05, 2010 —Jones Lang LaSalle is marketing for sale the long-term ground lease on 1150 18th Street NW, located in Washington, D.C.’s Central Business District.  The purchaser of the first mortgage loan will acquire the fee simple title to the 0.459-acre land parcel, as the borrower is in default and has entered into a standstill agreement with the lender and deposited into escrow a deed in lieu of foreclosure.
 
Leading the Jones Lang LaSalle team on this transaction are Managing Directors John Kevill and Collins Ege, with financing assistance from Real Estate Investment Banking Executive Vice President Ben Singer.
 
“This property represents an exceptionally rare opportunity to acquire a leased fee interest in the nation’s best office market,” said Ege.  “Ground leases are extremely common in both Europe and New York City, but far less common here in D.C.  We expect to secure strong interest from high net worth investors and many others who are actively seeking stability of income and protection against an inflationary environment.”
 
Added Kevill “During the past year, our investment sales team has executed everything from short sales, UCC foreclosure auctions and 363 auctions, to trophy sales such as the Evening Star Building and 1899 Penn.  This is another example of a property that changed hands because of market conditions, ultimately fetching pricing that will not be indicative of a distressed market.”
 
The leasehold interest of this property pays ground rent with annual increases calculated at the greater of three percent or CPI, which provides investors a minimum three percent annual escalation.  The leased fee interest is senior to the leasehold mortgage.  Sitting on the property at 1150 18th Street is an attractive Class A office building situated in a prime downtown location.  The 10-story building possesses a 17,000-square-foot L-shaped floorplate and offers windows on all four sides. The property is located just two blocks from the Farragut North (Red Line) and Farragut West (Orange and Blue Lines) Metro stations, within the core office market of the city.
 
This year, Jones Lang LaSalle’s D.C. investment sales team has closed 15 transactions totaling $1.4 billion in sales and recapitalizations, with another six properties currently on the market valued at approximately $900 million.
 
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 website, www.joneslanglasalle.com.