The Warner Building Has Sold for Nearly $380M

Warner Building
JBG Smith Properties sold the 621,000-sq.-ft. office building in Washington, D.C. to an affiliate of CBRE Global Investors.

The Warner Building has officially changed hands.

JBG Smith Properties Inc.

(NYSE: JBGS) has sold the 621,000-square-foot office building, located at 1299 Pennsylvania Ave. NW, to an affiliate of CBRE Global Investors for $376.5 million, according to the D.C. Recorder of Deeds. The 13-story Warner building is the 23rd-largest office building in Greater Washington, per WBJ research.

The deal works out to about $606 per square foot.

While the Warner Theatre, originally called the Earle Theatre, was built in 1924, the mixed-use office component wasn’t completed until 1993. The building was renovated in 2012, with upgraded entrance and elevator lobbies, a renovated atrium lobby, a new fitness center and a sky terrace.

JBG Smith took ownership of the Warner Building in July 2017 when the company was created through a spin-merge of Vornado Realty Trust’s D.C.-area holdings and The JBG Cos. It has been on a selling tear in recent months, with the goal of ultimately shedding at least $700 million in assets and reinvesting those proceeds into its many projects across Greater Washington.

While the Warner Building is virtually 100 percent leased, it will lose a major tenant in March 2020 when Baker Botts LLP makes the move to The Meridian Group's Anthem Row.

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