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Tuesday, February 12, 2013

Rock Creek Property Group Acquires 808-810 5th Street, NW

February 12, 2013 (Washington, DC) – The principals at Rock Creek Property Group announced today that they have acquired 808-810 5th Street, NW – two adjacent buildings totaling approximately 31,000 square feet located in the heart of Washington, DC’s Gallery Place/Chinatown neighborhood, steps away from the Verizon Center.

The purchase price was $5,954,000, or $192 per square foot. Rock Creek Property Group utilized its opportunity fund, Rock Creek Fund I Investors LLC, for equity associated with the acquisition. The property was purchased from Gospel Rescue Ministries, and the sale was arranged by CBRE.

808-810 5th Street, NW, is the long-time home to Gospel Rescue Ministries (also known as “The Mission”), which was founded in 1906. Rock Creek Property Group was introduced to the faith-based homeless shelter and treatment center regarding a possible disposition of the property nearly one year ago, and it has been working closely with The Mission’s leadership since then.

Following settlement, Rock Creek Property Group structured a low-rate, lease-back agreement that enables The Mission to make an orderly transition to its other DC properties, The Fulton House of Hope and Lambert House, where the ministry operates its programs for homeless and working poor men and women.

“We’re thrilled about the real estate,” said Rock Creek Property Group Partner Gary Schlager. “But we’re even more gratified to assist a great institution in Washington, DC, continue to serve the community in a meaningful way.”

“The Mission is now 100 percent debt-free,” explained Michael Cortese, executive director of Gospel Rescue Ministries. “With the help of our donors, staff, and the proceeds from this sale, we are stronger than ever before. We will redouble our efforts to transform lives by providing the Washington area's neediest citizens with education, job training, and substance-abuse recovery programs."

Working closely with the neighborhood and DC officials, Rock Creek Property Group’s plans are to develop a first-class, 50-plus-unit apartment or condominium project, preserving the historical significance of the property and its surroundings. Other possible uses include university housing, corporate housing for the growing surrounding base of national law firms, and clinical/office use for faith-based and other non-profit organizations.

“It is a rare opportunity to find a property of this caliber and location in Washington, DC,” said Rock Creek Property Group Partner Andy Glick.

“The East End demographics, amenity base and infrastructure continue to support redevelopment and long-term growth as Washington, DC, continues to attract attention in the downtown core,” stated Marc Rampulla, first vice president at CBRE, who represented the seller in the transaction and also acted on behalf of the trustee in the reorganization proceedings.

808-810 5th Street, NW, is Rock Creek Property Group’s sixth acquisition within its investment fund.

About Rock Creek Property Group LLC

Rock Creek Property Group, founded in 2002, is a commercial real estate investment company based in Washington, DC. Its principals own a diverse portfolio of commercial properties including office, medical office, industrial, multi-family, retail and urban in-fill sites with a primary focus in the Washington, DC, region. The firm is currently in the process of deploying capital from its Opportunity Fund, targeting value-add assets in the $2 million to $50 million range, notes purchases, partnership interests and joint ventures. For more information, visit www.rockcreekpg.com

About Gospel Rescue Ministries

As a non-denomination Christian social service agency, GRM works to break the cycle of homelessness, addition and poverty in our Nationa's Capital, through a holistic approach that reaches the complete individual. GRM treats both men and women physically, mentally and spiritually. For more information, visit www.grm.org

About CBRE Group, Inc.

CBRE Group Inc. (NYSE: CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2011 revenue). The company has approximately 34,000 employees (excluding affiliates), and services real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. For more information, visit www.cbre.com

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