GW Acquires 2001 Pennsylvania Ave. as Part of Strategic Growth

The George Washington University has acquired 2001 Pennsylvania Ave. from Carr Properties, providing the university swing space for administration and academic offices in the short term while also leaving room for future expansion that is currently under evaluation. The acquisition provides immediate revenue and cash flow with strong returns while also reducing GW's reliance on third-party leased spaces, thereby lowering overall operating expenses.

The building is a 161,000-sqaure-foot commercial property that is currently 67% leased to tenants, including Strada Education Services. The sales price for 2001 Pennsylvania Ave. was for $35 million, and its acquisition gives the university another asset on the globally recognized street.

"This is a unique moment in the real estate cycle for the university to purchase this Class A asset that supports our academic mission," Executive Vice President, Treasurer and Chief Financial Officer Bruno Fernandes said. "The institution is making a strategic investment into the future by taking an asset at a great value on historic Pennsylvania Avenue."

The property, which sits across James Madison Park on the opposite side of the Western Market Building (2000 Pennsylvania Ave), will continue to be managed as a first-class commercial office building by Carr Properties on behalf of the university while the university develops a long-term plan for the use of this investment property.

The acquisition of 2001 Pennsylvania Ave. comes on the heels of two recent purchases-The Avenue last February and 600 19th St. in December 2022. They will provide for university swing space to address the capital needs of other residential and academic buildings on campus. The strategic utilization of these new properties within our real estate portfolio allows us to diversify our revenue streams, easing the reliance on tuition while supporting operational expense reduction and providing income to the university endowment.