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2w ago

Jetset Hospitality Buys D.C.’s Watergate 600 for $52.5 Million

The transaction highlights the steep repricing of central D.C. offices during Elme Communities’ wind-down.

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Watergate 600 features a wraparound terrace on the seventh floor, offering views of the Potomac River.

Overview

  • District deed records show the 309,000-square-foot property at 600 New Hampshire Ave. NW sold to the local family office for $52.5 million.
  • The price is far below the $135 million Elme (then WashREIT) paid in 2017, underscoring ongoing pressure on office valuations.
  • Jetset obtained a $28.5 million loan from Symetra, with $13.8 million allocated to the acquisition and $14.7 million earmarked for future construction and tenant buildouts.
  • The purchase was completed through a 1031 exchange using gains from Jetset’s sale of 25 E St. NW to the D.C. government, which is operating that building as a homeless shelter.
  • Stream Realty represented the buyer, will manage and lease the asset, and is marketing roughly 125,000 square feet of contiguous space across four upper floors.