A Lionstone Investments and Hermes Real Estate joint venture has made its first investment in the US, buying an office building in Washington DC.
The two investors last month agreed a $250m (€201m) joint venture to target the US office sector.
The joint venture bought the 100 M Street property, in the Capitol Riverfront submarket, from Eastdil Secured.
The 243,000 sqft building is around 80% let.
Monument Realty will asset manage the property.
The companies said the Capitol Riverfront was one of the fastest growing submarkets in the Washington DC region.
Glenn Lowenstein, Lionstone co-founder and CIO, said: “100 M Street is one of the best office buildings in the Capitol Riverfront, a transformational neighbourhood that has a concentration of some of Washington’s most attractive natural and man-made amenities.
“These amenities, in combination with excellent accessibility via Metro and existing roadways, positions Capitol Riverfront to become an established, high-demand submarket within the next several years.”
Tenants include Parson, Regus, Dutko Grayling and Gordon Biersch.
Chris Taylor, chief executive at Hermes Real Estate, said: “Through the occupier-driven approach we share with Lionstone, we are confident 100 M Street will take its place within this flourishing neighbourhood.”
Hermes Real Estate and Lionstone Investments are using an open-ended structure to invest in US growth cities.
Privately-owned Lionstone typically targets well-located office assets on behalf of institutional investors and high net worth individuals and has invested across the core and opportunistic sectors.