Class A Office Building for Sale in Bethesda

Tuesday, May 7, 2019

Holliday Fenoglio Fowler LP (HFF), as exclusive representative, is marketing a 338,844-square-foot (BOMA), Class A office building for sale that is in the heart of downtown Bethesda, Maryland. Currently 90% leased to 19 tenants with 4.1 years of weighted average remaining lease term and 53% of RBA expiring in the first four years of an investor’s hold, 7500 Old Georgetown Road is one of the best risk-adjusted office investment opportunities in the region. Accordingly, the office building for sale is a unique core-plus opportunity with upside potential in one of Washington, D.C.’s top-performing office submarkets. An investor can capitalize on the asset’s preeminent Bethesda location while also upgrading the building’s amenity offerings to achieve attractive risk-adjusted returns.

Located on top of the Bethesda Metro Station (Red Line), the iconic property sits at the intersection of Wisconsin Avenue and Old Georgetown Road on the most prominent corner in Bethesda. The property is near the future Purple Line Station which, with the Red Line Station, are walkable via a below-grade, covered passageway from the property. 7500 Old Georgetown Road also features convenient vehicular accessibility to the entire Washington, D.C. metropolitan area via Wisconsin Avenue and the Capital Beltway (Interstate 495).

Office Property for Sale Investment Highlights

  • Core-Plus Opportunity with Upside Potential:  The 16-story building is 90% leased to 19 tenants with 4.1 years of weighted average remaining lease term and 53% of RBA rollover by the end of year four. It has a proven performance with 10-year average occupancy of 91% along with a unique opportunity to upgrade amenity offerings and achieve attractive risk-adjusted returns
  • Renowned Live-Work-Play Bethesda Location:  The office building for sale is a seven-minute walk from the nationally acclaimed Bethesda Row, which offers 60 stores and restaurants. Additionally, the Woodmont Triangle features 160 stores and restaurants and is steps from the property. Four grocery stores are located within a half-mile radius of 7500 Old Georgetown Road, and 5,047 residential units are within a half-mile radius with another 955 under construction. Bethesda is surrounded by some of Washington, D.C.’s most coveted residential neighborhoods, offering convenient commute times and immediate accessibility to Bethesda’s live-work-play environment.
  • Bethesda Is a Top-Performing Submarket Poised for Outsized Growth:  With a direct vacancy rate of 9.5%, Bethesda outperforms many top submarkets in the Washington, D.C. Metro area. New trophy development across all property types is attracting world class tenancy to Bethesda and lifting rents across all asset classes. As new trophy offices lift the overall Bethesda submarket, existing product such as 7500 Old Georgetown Road is becoming a cost-effective alternative to trophy rents of $60-$70 full service.
  • Marriott Headquarters Relocation Reinforces Bethesda as a Globally Renowned Submarket:  Marriott’s new $600-million, one-million-square-foot headquarters and flagship hotel are currently under construction two blocks from property. Once completed in 2022, the new headquarters will bring more than 3,500 new employees to Bethesda, and 7500 Old Georgetown Road will be a direct beneficiary of the new Marriott Headquarters and Bethesda’s ongoing evolution as a premier global submarket.
For more information on this iconic Class A office asset at the epicenter of Bethesda with outstanding multi-modal connectivity or any other office properties for sale in the Washington, D.C. area, please contact Jim Meisel, Andrew Weir or Matt Nicholson in HFF’s Washington, D.C. office. 
 

To view HFF’s current real estate investment listings, please click here to be directed to HFF’s property search page.

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