Dealmaker: John Hancock Pays $182M for Washington, D.C. Office

John Hancock Real Estate, Boston, acquired 1750 Pennsylvania Avenue in northwest Washington, D.C., a 279,000-square-foot Class A office building, for $182 million.

Vornado Realty Trust, Paramus, N.J., sold the 13-story tower in the city’s central business district. The real estate investment trust will continue to manage the property on behalf of John Hancock. 

The property occupies a prominent location between the White House one block to the east and the World Bank headquarters one block to the west. Currently 97 percent leased, the building received renovations in 2001 and last year.

“Our acquisition of 1750 Pennsylvania Avenue expands our footprint in the Washington market to over 1.3 million square feet of office assets managed on behalf of both John Hancock and external investors,” said Kevin Adolphe, president and CEO of John Hancock parent company Manulife Real Estate, Toronto. 

Vornado said it will recognize a $102 million gain in the third quarter. It will defer the tax gain as part of a like-kind exchange.