Office Building Near Capital One Arena Changed Hands
Investors acquired 700 Sixth St. NW in a deed-in-lieu-of-foreclosure transaction.
Updated on Oct. 6, 2026 in Commercial
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Assembly Real Estate and FitzWalter Capital Partners have taken ownership of the 306,000-square-foot office building located at 700 Sixth St. NW. The acquisition follows a deed-in-lieu-of-foreclosure process after the previous owner, Affinius Capital, relinquished the asset.
Why it matters
The transaction highlights the ongoing valuation shifts in the Washington, D.C. office market, where property notes are being purchased at a significant discount to their outstanding balances. This move helps the new partnership secure the asset as the local market navigates high vacancy rates and evolving commercial demand.
The building spans 306,000 square feet and was acquired through the purchase of a $140 million loan note. The new partnership secured a $54.2 million loan to finalize the transfer of the property.
The players
Assembly Real Estate
This is a real estate investment firm that partnered to acquire the office property at 700 Sixth St. NW.
FitzWalter Capital Partners
This investment firm, based in London and Hamburg, participated in the acquisition of the office building note.
Affinius Capital
This real estate investment management company relinquished its ownership of the building during the recent transaction.
Citi Real Estate Funding Inc.
This financial institution provided the new $54.2 million loan for the property's acquisition.
Eversheds Sutherland
This law firm is a major tenant in the building, occupying 143,000 square feet of office space.
The details
The building, which sits near the Capital One Arena, was originally developed in 2009 and had been owned by a predecessor of Affinius Capital since 2011. While the site maintains a 79% occupancy rate, the transition follows a period of shifting tenant needs, including the departure of law firm Cadwalader to a smaller space.
Timeline
The office building was originally developed in 2009.
USAA Real Estate purchased the property in June 2011.
Principal Real Estate Investors provided a $140 million refinance in 2019.
Law firm Cadwalader moved to a smaller office space in early 2024.
The deed-in-lieu-of-foreclosure transaction was executed in early October 2026.
Roadmap
This acquisition illustrates the broader trend of debt-driven ownership shifts within the commercial office sector. As institutional investors navigate high vacancy rates, such transactions demonstrate how firms are repositioning assets to withstand current market pressures.
The ownership change at 700 Sixth St. NW may signal shifts in building management and potential renovations for current tenants near the Capital One Arena. While daily operations for companies like Eversheds Sutherland are expected to continue, residents and local businesses may notice future updates to the property's facade or lobby.
The takeaway
Commercial property investors are increasingly utilizing debt acquisition as a primary strategy to gain control of high-value office assets. Prospective tenants and investors should monitor how these new ownership groups optimize existing lease agreements to stabilize occupancy in a challenging market.
Further reading
Explore more market updates in the Washington Commercial section.
Source note: This article includes information reported by Bisnow.
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