1201 New York Avenue
1201 New York Avenue was completed in 1987 and had a commanding presence in Washington, D.C. at the corner of New York Avenue and 12th Street, N.W. This building was purchased by Falcon Real Estate in March 1999 and eighteen months later Falcon also purchased 1225 New York Avenue. 1225 was originally built as an addition to 1201 but had been under separate ownership and management. The two buildings were subsequently merged by Falcon into a single property, with the combined property containing over 400,000 square feet of Class A office space just four blocks from the White House. After the merger of the two buildings, it became necessary to re-tenant the combined property and this was done by leasing space to such tenants as the Department of Homeland Security, the Office of Government Ethics, the Federal Elections Commission and the law firm of Staas & Halsey. The combined purchase price for the two properties was $114 million, with a combined equity of just over $50 million. The building was sold in September 2006 for $215 million, providing an Internal Rate of Return of 12%.