Harbor Group and Migdal Insurance and Financial Holdings Ltd. has announced the sale of the CNN building in Washington DC to Japanese real estate investment firm Unizo Holdings Co. for $140.5 million. The property was purchased by Harbor Group (60%) and Migdal (40%) in October 2012 for $107.5 million.
The building was constructed in 1990. It is situated close to Union Station, Washington’s main public transport hub. It has twelve floors and 28, 000 square meters of space, entirely let to high quality lessees, among them the studios of US news network CNN, various government agencies, consultancy Accenture and research institute CBPP. The CNN studios, which occupy the four top floors of the building and look out over Capitol Hill, are the network’s second main center.
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Jay Zwiebel, executive managing director of Harbor Group International, LLC and of Harbor Group Israel Ltd. said, “In the past few years we have signed lease agreements with new and existing tenants amounting to 40% of the property, and so we have been able to sell it now at such a price. We bought the building in 2012 with an existing loan, which is something that deters many buyers, and so the purchase was at below the market price.”
