News Release
AMSTAR GROUP FINALIZES SALE OF REPOSITIONED D.C. OFFICE PROPERTY TO REPUBLIC PROPERTIES
Denver-Based Private Equity Firm Closes Sale of 1425 New York Avenue With D.C.-Based Real Estate Investor
WASHINGTON, D.C. (July 11, 2005) – Amstar Group, LLC (“Amstar”) a real estate private equity firm based in Denver, Colorado, completed an office building disposition in Washington, D.C., announced Gabe L. Finke, CEO of Amstar. Republic Properties acquired the 275,000-square-foot, Class “A” 1425 New York Avenue office building for an undisclosed amount.
“1425 New York Avenue is a great example of Amstar’s value-added investment strategy. When Amstar acquired the building in 2000 it was not only encumbered by a ground lease, but it also had only three years remaining on its two anchor leases,” said Finke. “Amstar’s business plan was to reposition the building to retain the anchor tenants and ultimately acquire the ground. Thanks to unparalleled execution of our entire 1425 New York team we were able to accomplish our objectives.”
1425 New York Avenue was built in 1992 and acquired by Amstar in 2000. Amstar quickly repositioned the building through an intensive capital improvement program and undertook an aggressive leasing strategy. As a result Amstar signed a 235,000-square-foot, 10 year lease renewal with the Department of Justice that runs through 2014. Representing one of the market’s largest lease transactions completed in 2004, the Justice lease kept the building 100-percent occupied and preserved the building’s status as a leading D.C. address. Cushman and Wakefield’s Lou Christopher and Kilpatrick and Stockton’s Neil Levy and Mett Miller represented Amstar in the lease.
John Kevill and Collins Ege of Jones Lang LaSalle’s Washington, D.C. office represented Amstar in the sale, while Republic Properties represented themselves.
Amstar has realized significant investment returns for itself and joint venture partners through a disciplined disposition program, and the company continues to be an active investor. Over the next few years, Amstar plans to place approximately $1.5 billion in leveraged equity investments. Currently, the company has more than $300 million of its own discretionary equity available for investment. Since January 2004, Amstar has completed approximately $1.4 billion in transaction activity, including acquisitions, dispositions, and developments. This involved 19 properties representing roughly 3.7 million square feet of office space, 1,300 multifamily units and 1,300 hotel rooms.
About Amstar Group, LLC.
Established in 1987, Amstar Group is one of the leading real estate private equity firms in the United States. The Denver, Colorado headquartered company has acquired and developed more than 75 properties valued at $2 billion since its inception. Its current portfolio includes a diversified mix of commercial properties ranging from office, industrial, multifamily and hospitality. Currently, Amstar has approximately $400 million in equity under management. Amstar’s investment strategy focuses primarily on value-added investments, targeting office, multi-family, industrial, hotel, and retail in all the major U.S. metropolitan markets.