Paramount to sell Northern Virginia office building for $460m
Paramount Group has agreed to sell Waterview, a 24-story, 647,000-square-foot, class A office building in Rosslyn, Va., for $460 million.
The buyer was not disclosed; however, Morgan Stanley Real Estate is rumored to be the new owner. The transaction is expected to close in second quarter 2017.
Waterview is currently 99 percent leased, and all of the office space is leased to a single tenant, whose lease expires in January 2028.
Despite year-to-date negative absorption, the Washington, D.C., office market fundamentals improved in fourth quarter 2016, according to Colliers International. Demand ended the fourth quarter 2016 at 535,259 square feet of positive absorption and the vacancy rate decreased by 37 basis points this quarter. There is a large amount of new space coming to the market and a relatively small amount of growth from the existing tenants. With conservative market assumptions, vacancy is expected to increase by more than 200 basis points within the