Acquisition of commercial property in Washington DC, USA
Outstanding retail location, full occupancy, and long-term tenants
ZURICH, March 2, 2015 /PRNewswire/ -- AFIAA, the investment foundation of 35 Swiss pension funds with a focus on international commercial properties, expands its portfolio in Washington DC, USA with the purchase of the exceptional "Arch Square" property. The property is located in one of Washington's most premier retail locations in the heart of Chinatown in the vibrant East End.
The approximately 5,100-square-meter property was built before World War II and was extensively refurbished in 2012. It is fully leased to long-term tenants with excellent creditworthiness. The well-diversified and balanced tenant structure along with the staggered lease terms further enhance the unique quality of this property.
Retail space is located on the ground and first floor; the remaining floors are used as office space. Approximately 80% of rental income is generated by the retail tenants, the most famous being the drugstore chain "Walgreens" (majority shareholder of Swiss Galenica). The other retail tenants are the local Washington, DC athletic retailer, Sports Zone Elite, and the popular national restaurant chain, Panera Bread.
The entire office space is leased to the Alliance of Automobile Manufacturers, an association representing 12 of the world's largest auto manufactures; their headquarters is located at "Arch Square".
"Arch Square" is located at the corner of 7th & H Streets in Washington's vibrant East End, one of the most frequented corners in the entire District of Columbia. The immediate vicinity has a high amount of commercial and pedestrian traffic, mainly tourists, but also many who live and work in the area. More than 270,000 people work within a radius of one mile (1.6 kilometers).
The Verizon Center is located in the immediate vicinity, which holds more than 220 events a year for up to 20,000 people and is one of the busiest multi-purpose arenas in the United States. Furthermore, many prominent museums are located in the East End, with easy access to the National Mall. The distance to the White House is less than one mile.
Expansion of US share in equity portfolio investing
With the acquisition of the "Arch Square" property, AFIAA continues its growth strategy and realises its strategic objectives to increase the US allocation in its equity portfolio investments. The preferred retail location and its long-term credit tenancy make "Arch Square" very attractive as an investment. The total investment of the property is approximately CHF 100 million.
About AFIAA
AFIAA is an investment foundation under Swiss law, which invests exclusively in real estate investments abroad. AFIAA offers tax-exempt Swiss pension funds an attractive and clear investment instrument to specifically enhance their portfolios.
AFIAA maintains offices in Zurich, New York and Sydney. The portfolio currently includes 31 direct investments with sustainable growth potential in North America, Europe and Australia. The total investment volume amounts to approximately CHF 1.3 billion.
For more information about AFIAA, please refer to www.afiaa.com.
Contact
Melanie Fatzer
Office Manager
[email protected]
AFIAA Swiss Foundation for
International Real Estate Investments
Gartenhofstrasse 17
8004 Zurich
Switzerland
Tel. +41 44 245 49 44 / -51 direct
Fax +41 44 245 49 49
Photo - http://photos.prnewswire.com/prnh/20150302/178794
SOURCE AFIAA
Share this article