Purchase is Fifth Acquisition for Meridian’s $231 Million Fund II; Firm Plans Major Renovation that Will Add Three Floors to Building
The Meridian Group announced today that it has acquired 1901 L Street, with plans for a major renovation that will transform the eight-story office building in the Central Business District of downtown Washington, DC.
The purchase is the fifth acquisition for an affiliate of Meridian -- Meridian Realty Partners II, L.P., a $231.6 million discretionary fund. Meridian purchased the 132,372-square-foot building from New York Life off market, with no sales broker, for $75 million.
“This purchase perfectly fits our value-add investment strategy, and we are pleased to expand our DC portfolio with it,” said David Cheek, President of The Meridian Group, a Bethesda-based real estate investment and development firm.
Meridian plans an extensive renovation that will add three new floors of trophy space to the top of the building. The renovation also will include a new lobby with trophy finishes, a new façade, and new HVAC and elevator systems, as well as an exclusive tenant-only indoor-outdoor penthouse space, fitness center, and conference center.
The renovation will increase the size of the building to 206,000 square feet. Meridian selected Fox Architects to design the new building.
“With its exceptional corner location in the heart of the CBD, this acquisition has tremendous potential to add value,” said Gary Block, Chief Investment Officer of Meridian. “It is an outstanding opportunity to reposition and renovate this building into a trophy asset.”
The building is ideally located in the Central Business District (CBD) at the northeast corner of 19th and L streets. Within walking distance of the Farragut North and Farragut West Metro stations, the coveted location is easily accessible by car or four different Metro lines. The area also is pedestrian friendly, with 19th Street boasting extra-wide sidewalks.
Furthering its appeal: 19th Street is known as the CBD’s “Restaurant Row,” featuring downtown’s largest concentration of fast casual restaurants and eateries with outdoor seating.
At closing, the building will be 73 percent leased to two retail tenants -- Staples and Sweetgreen -- and a mix of 15 office tenants.
“We expect considerable interest from tenants as 1901 L Street is transformed by the renovation,” said Bruce Lane, Executive Vice President and Managing Director of Meridian. “Leasing brokers consider this one of the best intersections in downtown DC.”
The building is the latest acquisition for Meridian Realty Partners II. With leverage and additional co-investment capital, Meridian expects to acquire properties totaling approximately $1.5 billion for its new fund over the next several years.
Prior to this purchase, Meridian had completed four Fund II transactions totaling $326 million:
- International Place, a 12-story office building at 1735 Lynn Street in the fast-evolving center of Rosslyn, Va. The Meridian Group is renovating and repositioning the 293,539-square-foot building.
- 1400 L Street, a 12-story Class A office building at the corner of L and 14th streets in Washington, DC. The firm is working on a major renovation to the 172,453-square-foot building, located less than two blocks from the McPherson Square Metro station.
- 11111 Sunset Hills Road, a Class A office building in Reston, Va. The 216,000-square-foot building is located near the Dulles Toll Road and the Wiehle-Reston East Metro station.
- The Hyatt Regency Bethesda, a 390-room upscale hotel located at 7400 Wisconsin Avenue. The firm is repositioning the well-known hotel, which sits atop the Bethesda Metro station.
ABOUT THE MERIDIAN GROUP
The Meridian Group is a real estate investment and development firm based in Bethesda, Md. Since its inception in 1993, Meridian has acquired and developed more than 13 million square feet of office, residential, hotel, mixed-use, and land with a focus on the metropolitan Washington, DC market. To learn more, visit Meridian’s website at www.tmgdc.com.
