Rockwood Capital has recapitalized a Washington, D.C.-based trophy office complex. No financial terms were disclosed. As a result of the transaction, Rockwood now has a 49 percent stake in the 655 New York Avenue NW property while Brookfield Asset Management and Douglas Development have a 51 percent ownership stake.
New York, November 1, 2021 – Rockwood Capital (“Rockwood”) announced today it has completed the recapitalization of 655 New York Avenue NW, a trophy office complex in Washington, D.C. An affiliate of Rockwood has acquired a 49% stake in the Class A building on behalf of Meritz Alternative Investment Management. A Brookfield Asset Management real estate fund and Douglas Development, who together redeveloped and built the property in 2019, retained a 51% ownership stake. Terms of the transaction were not disclosed.
The 756,000 square foot property, located in the heart of Washington D.C.’s East End, is adjacent to the Washington Convention Center, bordered by Seventh and L Streets. With 79,000 square feet of the building allocated to retail, the LEED gold-certified complex is considered a masterpiece of preservation, constructed on a site that was assembled by Douglas Development out of 9 separate purchases over a 15-year period comprised of 19 historic structures combined with a new 11-story glass office tower offering panoramic views of the city. The building’s amenities include penthouse conference space, rooftop terraces, a fitness center, lounge, game room, bike rooms and lockers, and 467 spaces of underground parking. Current office tenants include PwC, UnitedHealth Group, and Brookfield.
David Becker, a Managing Partner at Rockwood, said, “We continue to target state of the art office assets with significant tenant credit and weighted average lease term in locations and settings that are poised to successfully attract and retain a highly educated labor force. We are very enthusiastic about partnering with Brookfield and Douglas Development in the ownership of this trophy asset.”
About Rockwood Capital
Rockwood Capital is a real estate investment management firm founded in 1995 that provides debt and equity capital combined with real estate operating expertise for the repositioning, development, redevelopment and recapitalization of residential, office, retail and hotel space in key markets throughout the United States. Rockwood is a 75-person organization with offices in New York, NY; San Francisco, CA; and Los Angeles, CA. Since inception, Rockwood and its principals have invested in approximately $34.4 billion of real estate and real estate-related assets (gross asset value). As of Q2 2021, Rockwood manages a portfolio of approximately $10.8 billion (gross asset value). Rockwood’s international investor base includes sovereign wealth funds, public and private pension funds, endowments, foundations, insurance companies, funds of funds, high net worth individuals and family offices.