Building to continue as commercial office and retail building.
The George Washington University has retained Cushman & Wakefield, a commercial real estate services firm, to advise the university as it seeks a real estate investor/developer to enter into a long-term ground lease of 2000 Pennsylvania Ave., NW. Known as 2000 Penn, the property is a mixed-use building comprising office and retail space. Cushman & Wakefield has begun to market the property.
The approximately 404,000-square-foot building will continue to be operated as a commercial mixed-use building, and office and retail tenants will remain under existing leases. There are no near-term plans to redevelop the building.
2000 Penn was developed by GW in 1982 and has been independently managed as an investment property since its inception. The university’s investment properties generate revenue for academic priorities.
“The university continues its efforts to reposition investment real estate assets with the goal of maximizing its returns in support of the university’s academic mission. Ground leases, such as those in place for The Avenue/2200 Pennsylvania Ave., and 2112 Pennsylvania Ave., allow the university to reduce its operating risks while maintaining or enhancing cash flow to the university,” said Alicia Knight, senior associate vice president for operations.
The university will review proposals received from interested parties and will make a decision on its next steps following a review of offers. The timing of a decision, although anticipated sometime next spring, will depend on the interest of the market and the quality of the offers received.