Rockrose Development Co. has acquired 1146 19th St. NW for $26.5 million, or roughly $550 per square foot, as the New York-based firm seeks to establish a significant footprint in downtown D.C.’s office market.
Rockrose acquired the 8-story building by 19th and M streets NW from American Real Estate Partners, adding to a portfolio of more than 1 million square feet in the District. The acquisition, along with its pending purchase of 2000 L St. NW, is part of a Rockrose’s growing presence in D.C.’s Golden Triangle neighborhood.
“We’ve been on a nice roll in D.C. starting in 2011 with our purchase of 1776 Eye St.,” Rockrose President Justin Elghanayan said. “We made a strategic decision to rebuild our portfolio in D.C., and we’ve done that.”
Rockrose has been on a buying spree in the District in the past few years, acquiring several properties in the Triangle including 1776 Eye St. NW for about $120 million, 1150 18th St. NW for $43 million and 1900 M St. NW for $55 million.
“We purchased all of those buildings within the Golden Triangle, and they’re all within a few blocks of each other, so there’s a lot of synergies that comes with that,” Elghanayan said. “I think we have a really strong base where we can grow from.”
Elghanayan said Rockrose has been focusing on buildings where it can add value by making facade and interior improvements, and he noted those efforts are already bearing fruit. Rockrose has signed more than a dozen leases since completing a renovation at 1150 18th St. NW, for example.
-Daniel J. Sernovitz