C. Frederick Wehba and his real estate firm make bold new purchase

Brave move in competitive market

C. Frederick Wehba and New Washington Purchase

Under the leadership of C. Frederick Wehba, commercial real estate investment firm BentleyForbes has worked to acquire the Watergate Building in Washington D.C. This purchase marks a dramatic modification of Wehba corporate goals, shifting business focus from single tenant properties to multi-tenant properties.

The move away from single tenant properties began in an effort to increase returns on investments, as BentleyForbes strives to capitalize on its rapid growth and investment success over recent years.

BentleyForbes latest Washington D.C. acquisition became famous in 1972, the year President Nixon’s spies infiltrated the building when it was Democratic National Committee Headquarters. The resulting scandal and investigation led to Nixon’s resignation as president before he could be impeached.

The purchase has sparked query’s into a possible BentleyForbes move into the public sector, but according to firm president David W. Cobb, neither he nor C. Frederick Wehba have any plans to end the company’s private status.

The Washington D.C. real estate market is notoriously high priced and difficult to enter, explaining BentleyForbes recent distance from the market. However, this powerful acquisition of the infamous Watergate office complex illustrates the power and aggressiveness of the expanding BentleyForbes firm.

C. Frederick Wehba plans minor updates to Watergate’s large 11 story building, hoping the renovations will please future tenants and upgrade the building for future investors.

Recent work with the Watergate Complex helps BentleyForbes expand in a market area that is impenetrable for many. An investment firm lacking the growth levels and investment aptitude of BentleyForbes would be unable to attempt this move, illustrating the company’s potential for future market triumph.

This Los Angeles Business Journal article highlights the important aspects of the Washington purchase and provides important information about BentleyForbes.

Watergate Digs

Bentley Forbes LLC has purchased the Watergate office building in Washington, D.C. from Trizec Properties Inc. for $86.5 million.
The building is where GOP operatives broke into the Democratic National Committee headquarters in 1972, sparking the scandal that led to the resignation of President Richard M. Nixon.

Bentley Forbes, a privately held Los Angeles real estate investment firm, plans minor renovations to the 11-story building, which also has 61,000 square feet of retail space at 2600 Virginia Ave. N.W. The adjacent hotel is not part of the deal.

David W. Cobb, president and chief executive of BentleyForbes, said the company had been scouring the Washington market for some time, but that fierce competition and high prices had kept them at bay.

"The market is very strong, probably the strongest in the country," Cobb said. "There wasn't anything particular about this building. We've been looking to acquire a nice building in that market."

While Washington's market vacancy rates are hovering above 4 percent, Cobb said there's room for improvement at the Watergate. "Rents are below market in this building, we believe," he said. "We are going to do some minor upgrades."
He also said the company, controlled by C. Frederick Wehba, is staying private, despite recent speculation that it would go public. "We might be in the market to do joint ventures in the future," Cobb said. "We would probably go the JV mute rather than the 'going public' route."

The Watergate purchase illustrates the new direction that Cobb has been taking with BentleyForbes. The firm has been shedding its portfolio of single-tenant buildings in favor of multi-tenant properties like the Watergate.

"It's all part of our capital recycling program," he said. "We see better risk-adjusted returns from multi-tenant (properties) as compared to single." The Watergate sale was first reported in the Washington Post.

-Los Angeles Business Journal