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.