Visions - Spring 2008 - (Page 14)

Real Estate SCOA Returns to D.C. Real Estate With Purchase of K Street Building E ven with the current air of financial caution surrounding the real estate world, SCOA’s Real Estate Unit saw a great opportunity and seized it through the purchase of a downtown Washington D.C. building this spring. “This purchase offered the best value with the least risk; that is, it had the best risk-reward profile,” said Robert Obringer, General Manager of SCOA’s Real Estate Unit.“The property is 100% leased for six years, which will guarantee to take us past any nearterm recession.This transaction is really a good one because it combines stable cash flow with long-term upside potential. Long-term leases from legal firms already occupy 88% of the building.” SCOA’s Real Estate Unit closed on the purchase of the building on April 28th, with a final purchase price of nearly $75.5 million. The 160,000-squarefoot, 12-story office building is located at 1750 K Street, in the heart of the Central Business District. The building resides just three blocks northwest of the White House on the corner of K Street at Connecticut Avenue. Since 2004, the building has experienced nearly $750,000 in capital improvements. The lobby’s marble floors and granite panels add to its decor. The Real Estate Unit is always on the lookout for well-leased, well-located properties in this particular market. “D.C. has been one of our target markets for several years,” explained Obringer. Why? Obringer smiled.“Have you ever known government to shrink?” The purchase of this building marks SCOA’s return to the D.C. real estate market; in the 1990s, SCOA built a hi-rise apartment building in nearby Pentagon City called ParkVista Apartments. Obringer also notes the lack of vacant land in the This transaction is really a good one because it combines stable cash flow with long-term upside potential. Long-term leases from legal firms already occupy 88% of the building. D.C. area, citing that there’s just no available land to build new properties. He also commented that the current volatility in the finance world actually spells good fortune for Washington’s commercial real estate buyers. “With turmoil in the financial markets, purchase prices have declined, which gave us the opportunity to acquire a localized asset in our target market,” Obringer said. For more information, please contact Robert.Obringer@sumitomocorp.com 14 visions Spring | Summer 2008

Table of Contents Feed for the Digital Edition of Visions - Spring 2008

Visions- Spring 2008 Revving the Engines of the Auto Industry- A Look at SCOA Automotive Related Businesses Helping Mitsubishi Regiona Jet Take Flight SCOA Returens to D.C. Real Estate with Purchase of K Street Building Contributing to Society- SOCA Foundation Gives to Broad Range of Causes in 2007

Visions - Spring 2008

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