Savills appointed to market parts of Watergate Complex

Savills has announced that its New York-based business has been retained to market the sale of elements of Washington's famous Watergate Complex. The property was at the heart of the scandal that led to the resignation of US President Richard Nixon in 1974.

BentleyForbes, the Los Angeles-based private real estate investment firm, has instructed Savills to market the sale of The Watergate Office Tower, Retail Promenade and Parking Facility in Washington D.C. The vendor is seeking offers of more than $100 mln (EUR 78 mln) for the property, reflecting an initial 8% capitalisation rate based on 2009 net income. Savills said the property is subject to attractive assumable financing at an initial blended rate of 5.43%. Financing runs through to October 2015.

The Watergate Complex is a 10-acre mixed-use development that comprises three luxury residential towers, two Class-A office buildings, a 200-room hotel that is presently under renovation, and an ancillary parking garage. The assets available for sale include: 2600 Virginia Avenue, a 18,445 m² Class-A office building; 2500 Virginia Avenue, a retail venue with a total accommodation of 6,135 m2; and a 314-space underground parking facility.

'Washington D.C., is one of the healthiest office markets in the country, and with government as its core industry, has a tremendous outlook, especially as the current administration expands its holdings,' said John D. Lyons, CEO of New York-based Savills. 'This is a prime opportunity for savvy investors seeking best-in-class assets with global recognition. The Watergate office tower is one of the world's most prestigious buildings.'

The property for sale is more than 90% leased to a diversified tenant roster that includes the Saudi Arabian Cultural Mission, Saul Ewing, the Washington Opera and PNC Bank. Retail tenants include the US Postal Service, CVS Pharmacy and Safeway supermarket.

Founded in 1996, New York-based Savills is a real estate investment banking firm offering investment sales, debt and equity placement, and advisory services. Formerly known as Granite Partners, the firm was acquired in August 2007 by UK-based Savills PLC.