World Bank buys DC building for $129.5M

World Bank is now the sole owner of 1776 G St. NW. (CoStar photo)

The World Bank has operated out of 1776 G St. NW for more than 30 years. On Thursday, the international organization of 189 member nations bought it.

Washington Real Estate Investment Trust (WashREIT) sold the 265,000-square-foot office building to the International Bank for Reconstruction and Development, part of the World Bank Group, for $129.5 million.

The deal comes two months after the World Bank renewed and extended its lease there through 31 December 2025, and secured a one-time right to purchase the building that would expire at the end of the calendar year.

“We are pleased to have reached a mutually beneficial agreement with our largest tenant and the natural buyer for this asset given its strategic location relative to their headquarters,” WashREIT CEO Paul McDermott said in a release.

The World Bank is based at 1818 H St. NW.

According to D.C.’s annual financial report, the International Finance Corp., Inter-American Development Bank, International Bank for Reconstruction & Development and International Monetary Fund own a combined $2.69 billion worth of D.C. real estate. It is all exempt from D.C. taxes, as 1776 G will be once the ownership changes.

WashREIT paid $2.3 million in real property taxes for 1776 G in 2019 alone.

With the sale, WashREIT’s exposure to single-tenant office buildings stands at 7% of its remaining office portfolio, down from 26% two years ago. Generally, the real estate company focused on “de-risking,” in 2019 as it drastically cut its retail holdings while ramping up its multifamily acquisitions.

WashREIT spent more than half a billion dollars on apartments in three months mid-year, while selling its suburban retail power centers. (Washington Business Journal)