Union Square Station ground lease sold.

WASHINGTON, DC: Granite Partners LLC, the New York real estate investment banking firm, has arranged the sale of an 84-year ground lease for Union Station in Washington, D.C.

Through an intensive selection process managed by Granite Partners, New York-based Ashkenazy Acquisition purchased the leasehold interest for the nationally landmarked property in a transaction valued at $160 million.

Union Station consists of 213,000 s/f of retail space and 109,700 s/f of office space, in addition to a 63,800 s/ ft Amtrak concourse.

"Because of Granite Partners' understanding of the capital markets and our experience with trophy and urban retail assets, our firm was ideally suited to maximize value at this historic and high-profile location," said Gerry Mason, executive managing director at Granite Partners.

Granite Partners served as exclusive representative for Union Station Venture II, a consortium of institutional and private-equity investors, represented by Boston-based AEW Advisors.

"This complex transaction involved a prominent national landmark with a ground lease held by an agency of the federal government, and literally dozens of capable buyers expressed avid interest," said Mason. "Granite Partners positioned the asset for the highest possible value, managed an exacting due diligence process, and ran a selection procedure that was fair and equitable to all interested parties."

Managed by Jones Lang LaSalle Retail, Union Station--which opened in 1908--has about 130 restaurants and stores. Retail sales are extremely brisk, with sales per square foot exceeding twice the national average for shopping malls. Amtrak leases the property's office space.

The sale readily won approval by Union Station Redevelopment Corp., the nonprofit organization set up by the government to own and oversee the property.