Office Properties Income Trust has completed the sale of 500 First Street NW in Washington, D.C. for a sale price of $70 million, excluding closing costs. The 129,035-square-foot property is located two blocks from Union Station and is expected to become vacant during the second quarter of 2019.
“We had planned to substantially renovate and reposition 500 First Street after the Bureau of Prisons vacated the building as early as the end of April, but at a sales price of more than $540 per square foot for a to be vacant building, we decided to be opportunistic and focus our capital elsewhere,” said David Blackman, OPI’s President and Chief Executive Officer. “This sale helps advance our deleveraging efforts, having now completed $268.5 million of asset sales so far in 2019.”
Proceeds from today’s sale of properties will be used to repay a portion of OPI’s unsecured term loans.
Office Properties Income Trust is a real estate investment trust, or REIT, which primarily owns properties located throughout the United States and leased to single tenants and those with high credit quality characteristics like government entities.