Historic Watergate Office Building changes ownership

Rockwood Capital has sold the Watergate Office Building at 2600 Virginia Avenue in Washington, D.C., to Friedman Capital.

The 215,520-square-foot, 11-story office tower is located on the Potomac Riverfront in Washington, D.C.’s West End, a core downtown submarket known for its luxurious hotels, high-end restaurants and luxury residential real estate. The building, the site of the 1972 break in at the Democratic National Committee headquarters, is famous for its role in the Watergate scandal that ultimately led to the resignation of President Richard M. Nixon in 1974.

The property is currently 90 percent leased, and its tenants include the National Trust for Historic Preservation and George Washington University. Rockwood purchased the building in December 2016.

“We have been pleased with the quality of the sale process, which reflects the underlying value of the Watergate and the dynamic D.C. market,” said Richard Kramer, director of acquisitions at Rockwood. “The investment in the Watergate is consistent with our strategy of investing in well-located real estate that provides amenities designed to help today’s tenants attract and retain talent at a discounted rent to trophy buildings. We believe these investments outperform in the long term and the next owners will benefit from continued upside potential offered by this historic building.”

The Watergate Office Building was built in 1967 as part of the 10-acre, six-building Watergate complex that also includes three luxury residential buildings, the Watergate Hotel, and the 600 New Hampshire Avenue office building, all built around a central retail plaza. Designed by Italian architect Luigi Moretti, the project was the first mixed-use development in the District and was, at the time, the largest privately-funded urban renewal project in the history of Washington, D.C.

“The Watergate Office Building’s sustained leasing velocity, driven by ongoing strategic improvements by Rockwood, gave the property an enviable market position,” said James Cassidy, executive managing director, Newmark Knight Frank, which represented the seller. “The transfer of ownership will only ensure the continued success of this illustrious American building.”

Friedman Capital is a D.C.-based, family-owned firm with extensive development experience in the area, including the LINE Hotel and AdMo Heights. The firm is planning to add high-end lifestyle options to the building such as a sports book, restaurants, urban athletic club, co-working office and a Nixon museum.