Components of Iconic Watergate Offered to Market
Nov 08, 2016

WASHINGTON, D.C., Nov. 8, 2016 – Institutional Property Advisors (IPA), a division of Marcus & Millichap specializing in serving institutional and major private real estate investors, is pleased to announce it is exclusively marketing the retail shops and attendant parking elements of the iconic Watergate complex for sale. The offering includes 57,494 square feet of retail space that is currently 85 percent leased, and a multi-story parking garage. These parcels have never been listed independently. The price is to be determined by the market.

“The diversity of the income streams found in this world-renowned property in a sought-after urban location creates a truly unique investment opportunity,” says Dean Zang, IPA senior director. “The offering includes three levels of retail anchored by a CVS/pharmacy that occupies 22 percent of the complex’s total leasable retail area. Approximately 33 percent of the offering’s income is derived from the Watergate complex’s sole parking facility.”

Zang and Nathan Pealer, a director in Marcus & Millichap’s National Retail Group and Joshua Ein, senior associate, are representing the seller, Penzance and Greenfield Partners. Bryn Merrey, senior vice president, is Marcus & Millichap’s broker of record in the District of Colombia.

The 10-acre Watergate complex is located along Virginia Ave. NW, adjacent to the Kennedy Center in downtown Washington, D.C. Designed by the Italian architect and urbanist Luigi Moretti, the Watergate’s distinctive architectural style, Potomac River location, and notable history make it one of the most recognizable privately owned assets in the District of Columbia. The site has panoramic views of the river, the Washington Monument, the Rosslyn skyline, and downtown D.C.

“The retail and park¬≠ing elements of this offering are poised to benefit from the reopening of the Watergate hotel, which is the recipient of a six-year, $125 million renova¬≠tion,” adds Zang. “This is an extremely unique opportunity to literally buy a piece of history that draws international appeal from both its prominence and value-add potential.”