PREI Acquires 688,493-SF Office Complex

BETHESDA, MD-Prudential Real Estate Investors has acquired Democracy Center, a three-office complex here, from Boston Properties on behalf of institutional investors. Bill Collins, Paul Collins, Drew Flood and James Cassidy of Cassidy & Pinkard Colliers represented Boston Properties, which originally developed the 20-year old, 688,493-sf space.

Pillsbury Winthrop Shaw Pittman LLP provided legal representation to Boston Properties, and DLA Piper provided legal representation to Prudential Real Estate Investors. The price was not released; however, an industry source tells GlobeSt.com that the deal was very indicative of Downtown Bethesda prices, trading for more than $400 per sf.

The complex, which was designed by Skidmore Owings & Merrill LLP, is situated on a 15.4-acre site in the Rock Spring Office Park. Located at 6901, 6903 and 6905 Rockledge Dr., the three buildings surround an outdoor plaza. 6903 Rockledge centers the complex at 15 stories.

Paul Collins tells GlobeSt.com that the complex is still a trophy-quality asset despite its age. The occupancy rate, he says, is in the high 80s, thus providing the new owner with a value-add opportunity. “They will be leasing up the balance of the space and there are also some below market leases that will be raised,” he says. The asking rate will be in the high 30s.

Brendan Cassidy, John Myers and Rocky Kern of Cassidy & Pinkard Colliers will be handling the leasing and marketing for the property. Current occupants include hospitality, financial services and real estate companies.