A foreign investor has acquired a healthy stake in 655 New York Ave. NW, two years after Douglas Development Corp. and Brookfield Properties (NYSE: BAM) partnered to complete the massive mixed-use project.
In a recent investor day conference, Brian Kingston, Brookfield’s managing partner and CEO of real estate, disclosed the company has sold a 25% interest in the 768,000-square-foot development. Sources familiar with the deal say Douglas, too, sold 25% of its stake. Kingston did not disclose the seller, but South Korean newspaper The Korea Economic Daily reported last month that Seoul-based Meritz Alternative Asset Management Co. had formed a $170 million fund to buy stake in the project.
The sale, at a 4.75% cap rate, returned all of Brookfield’s capital invested in the project, plus a 20% return on investment over the five years it has owned the stake, Kingston said. None of the three companies — Brookfield, Douglas or Meritz — commented on the transaction.
