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AT&T Sells Downtown Office for $112M
Reign Capital has acquired a downtown D.C. building that is home to AT&T Inc.’s telecommunications infrastructure. An affiliate of Reign Capital paid $112.3 million for the eight-story 725 13th St. NW, reported the Washington Business Journal.
The acquisition was part of a larger megadeal that secured a $850 million nationwide asset transfer between the two companies. Under the agreement, AT&T and Reign Capital structured a sale-leaseback transaction covering 74 AT&T central office facilities totaling 13 million square feet across the U.S.
“The uniquely structured deal unlocks value in otherwise stranded commercial real estate space,” said Michael Ford, head of global real estate at AT&T. “It’s a creative solution providing both upfront and long-term value through a revenue sharing model that fits with our broader company and transformation initiatives.”
The D.C. property had an assessed value of $33.9 million, and Reign obtained an $11.8 million loan from UMB Bank to support the purchase, per the Journal.
