Project OverviewThe CoStar Group Building at 1331 L

Street is a 169,429 square foot trophy

offi ce building located in Washington,

DC. Built in 2008, 1331 L Street was

one of the fi rst LEED® Gold Core and

Shell offi ce buildings in Washington,

DC, and one of just a few in the nation.

The 10 story, state-of-the-art virtually

freestanding asset features glass on all

four sides and a unique crystalline glass

tower on the southwest corner that not

only identifi es the property, but also

provides a remarkable rooftop setting

with expansive city views.

The building was 100% leased at the

time of sale, with the seller and lead

tenant, CoStar Group, occupying 88% of

the building on a NNN, escalating lease

through 2025. CoStar Group acquired

the building in 2010 and relocated its

global headquarters from Bethesda, MD,

to Washington, DC. Upon acquisition

in 2010, the building was only 12%

leased, so the company’s relocation

also transformed a formerly distressed

building into a valuable asset.

The Challenge• The seller/tenant’s lease was not yet

signed and could still be negotiated,

adding complexity to the situation. The

lease involved several moving pieces

related to future tenant improvements,

as CoStar Group was in the middle of

renovating the lobby and interiors.

• Additionally, there were security

concerns since CoStar Group houses a

signifi cant data center and proprietary

information in the building.

• Tenant improvements further

complicated matters, as substantial

construction was underway during

building tours.

The Cassidy Turley Solution• In marketing the asset, Cassidy Turley

provided renderings and told the story

regarding the building’s technological

features and sleek, modern interiors.

• Additionally, Cassidy Turley arranged

meetings between the fi nalists and

CoStar Group to give the fi nalists an

opportunity to learn more about the lead

tenant and its vision for its business and

the property.

Results Achieved• Ultimately, the building sold for $101

million, or $595 per square foot, a 145%

increase over what CoStar Group paid

for the asset in 2010. The transaction

represented the most successful sale-

leaseback in Washington, DC, and

perhaps the U.S., in 2011.

• Under the sale agreement, $15 million

of the consideration was held in escrow

to fund future tenant improvements and

upgrades to common areas.

cassidyturley.com

Sale of Trophy, NNN-leased Offi ce Building Achieves 145% Return

ClientCoStar Group

LocationWashington, DC

GoalDisposition of trophy,

headquarters offi ce building in

Washington, DC, CBD

Cassidy Turley Services• Investment Sales

Sale/Leaseback

Copyright © 2013 Cassidy Turley. All rights reserved.

The CoStar Group Building