The Paramount Group has entered into an agreement to sell the Waterview office building in Rosslyn, Virginia for $460 million. The 24-story, 647,000 square foot, Class A office building is currently 99 leased leased to a single tenant, whose lease expires in January 2028. The sale will result in a financial statement gain of approximately $110 million and a tax gain of approximately $393 million, which will be deferred as part of a like-kind exchange for the acquisition of One Front Street. The transaction is expected to close in the second quarter of 2017.
“The sale of Waterview further advances our efforts to enhance shareholder value,” stated Albert Behler, Chairman, CEO and President. “By recycling the capital from this stabilized asset into our recent, more accretive, One Front Street acquisition, we believe shareholders will benefit from our team’s ability to add value by capitalizing on expiring leases that are 20 percent below market.”
