Norway’s sovereign wealth fund has teamed up with Oxford Properties for the second time to invest in the Washington DC office market.
Norges Bank Investment Management (NBIM), which manages the NOK8.1trn (€851bn) fund, said it had entered into a transaction that valued 1101 New York Avanue NW at US$389.3m (€343m).
The announcement comes one day after NBIM said it had bought 49% of another office building in the city for US$74m – its debut acquisition in joint venture with Oxford Properties, the real estate investment arm of Canadian pension fund OMERS.
Norges Bank Real Estate Management, the real estate arm of NBIM, has again has bought a 49% stake, while Oxford Properties will own 51% and manage the property.
The acquisition of the building, which comprises 353,000sqft of office space and 32,000sqft of retail and storage space, includes debt financing.
The vendor was 1101 New York Holdings, a company owned by WR Berkley Corporation and Property Group Partners.