Washington Business Journal - December 6, 2010
CoStar Group Inc., the publicly traded firm known for its real estate data tracking, is continuing to prove that it can be quite the aggressive dealmaker itself.
Just 10 months after buying the former Mortgage Bankers Association headquarters at 1331 L St. NW for its new D.C. headquarters for just $41.25 million — compared with the $76 million the mortgage bankers group paid in 2008— CoStar has put the building back on the market.
Cassidy Turley is marketing the 169,429-square-foot building for sale. Its marketing materials bill the project as fully leased.
At the time of the acquisition, CoStar CEO Andy Florance estimated that buying its headquarters building would save about $1 million a year compared with leasing. But now, putting the property back on the market suggests the company sees an even greater financial opportunity from cashing in on the District’s hot investment sales market.
CoStar would stay in 88 percent of the building under an escalating triple-net lease that runs through 2025.
CoStar moved its headquarters to D.C. from Bethesda, lured by a $6.1 million, 10-year tax abatement passed by the D.C. Council in January, if it hires 100 D.C. residents, among other criteria.
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