Not 1 But 2 HQ Deals
Where curiosity meets commercial real estate strategy.
This week, we’re spotlighting a company that doesn’t just study the market—they play it like a grandmaster. Let’s get curious about Costar and their bold, strategic real estate moves across two headquarters deals over the past 15 years.
Deal #1: The Flip at 1331 L St NW (Washington, D.C.)
Feb 2010: CoStar acquires 1331 L St NW from the Mortgage Bankers Association for $41.25M.
This was a distressed sale—MBA had purchased the building just 18 months earlier in June 2008 for $79.32M.
Huge loss for MBA, but a well-timed bargain for CoStar.
Feb 2011 (just 12 months later): CoStar sells the building in a sale-leaseback deal to Manova Partners for $101M.
That’s a >140% gain in one year, while CoStar remained a tenant in the building.
What’s curious:
CoStar wasn’t just looking for space—they were leveraging timing, distress, and control. They bought low, monetized high, and secured tenancy without long-term capital commitment.
Deal #2: The Long Game at 1201 Wilson Blvd (Arlington, VA)
Feb 2024: CoStar acquires 1201 Wilson Blvd, a 552,279 SF trophy building in Rosslyn, for $325M from JBG Smith.
Back in 2019, JBG sold a 50% interest in the building to PGIM for $220M, valuing it at $440M—which means CoStar got a solid discount on the asset.
The plan? Move HQ from 1331 L St to 1201 Wilson.
But here’s where it gets interesting:
Nov 2024: Just 9 months post-acquisition, Gartner, the main tenant at 1201 Wilson (occupying 350K SF), pays CoStar $48M to terminate its lease early.
Gartner then signs a new lease—for only 49K SF.
Early 2025: CoStar moves in and now occupies 287K SF as its new corporate HQ.
What’s curious:
CoStar didn’t just get a premium office building at a discount—they collected a $48M check to clear the space for themselves. That’s a playbook most tenants dream about but rarely pull off.
Takeaway:
CoStar’s not just analyzing real estate data—they’re using it to make bold, asymmetric moves:
Deal #1 shows how to profit from distress and time the market.
Deal #2 shows how to reposition a premium asset, negotiate with leverage, and create value on multiple fronts.
Two HQs. Two wildly different strategies. One constant: CoStar knows how to play the game.
Stay curious,
Moshe