Just a year from acquiring a commercial building as their company’s headquarters, CoStar Group Inc— provider of information/marketing services to commercial real estate professionals in the U.S, has sold it for double the price. The company acquired the 169,429 square feet commercial building for about $41.25 million in February 2010, from Mortgage Bankers Association.
Now, the company has sold the commercial building for $101 million, about $60 million profit from what its original purchase price, but the company also signed a long- term lease with the new owner— an affiliate of Munich, Germany- based GLL Real Estate Partners.
The company was lured by the state— Washington, D.C. by offering a $6.1 million discount, a 10-year agreement in property taxes, which is conditional upon hiring at least 100 employees from the state.
According to a report, the company met the district’s tax abatement requirements, months after moving in the district.
CoStar Group received numerous offers from interested buyers for the commercial building, which is located at 1331 L St. NW.
About 88 percent of the commercial building will be leased to CoStar under a 15- year leasing contract, which will be signed later this month, when the transaction closes.
According to a press release from the real estate data and analysis firm, the company believes that getting additional tax incentives is possible for it plans to create another 700 more jobs for its headquarters in the state.
The company moved its former Bethesda- headquarters at one of D.C.’s commercial building last year because of the excessive real estate tax incentives.