Smithsonian at Capital gallery,
Boston Properties, Newmark
The 2020 sales Transaction of the Year...
BXP sold 455,000 RSF of the 632,000 RSF Capital Gallery complex to The Smithsonian Institution ("Smithsonian"). Smithsonian was represented in the purchase by Michael Ippolito, Daniel Katcher, James Cassidy and Jud Ryan with Newmark Knight Frank.
Capital Gallery, located at 600 Maryland Avenue SW, sits next to the L’Enfant Plaza Metro station, one block south of the National Mall in the SW submarket. The building, a multi-tenant Class A office complex, comprised of an East and West Tower, was originally constructed in 1981. In 2006, BXP added 318,500 RSF to the complex, for a total of 632,000 RSF. At the time of sale, the building was 95% leased with the largest tenant being Smithsonian, occupying 268,000 RSF through May 21'.
The ownership structure was quiet complex in that the building was sub-divided into assessment and taxation lots (“A&T Lots”), with Smithsonian owning 455,000 RSF of office space and BXP retained ownership of 177,000 RSF of the property, which includes 157,000 RSF of office space, 20,000 sq.ft of retail and parking garage. In order to meet Smithsonian’s consolidation and occupancy objective, BXP successfully relocated 70,000 RSF of tenants from Smithsonian A&T Lots and into the portion of the complex BXP continues to own.
BXP is pleased that Smithsonian will remain an occupant for the long-term, now as an owner and partner. This transaction was a win-win outcome where the BXP team of Jake Stroman and Saara Brown worked with a long time tenant and a revered national institution of import to the culture and history of our country to most efficiently meet its critically important mission.