Brookfield has unloaded the ground lease on a downtown Bethesda office tower at a price that would have seemed unthinkable during the last cycle. Florida-based In-Rel Properties picked up the lease to 3 Bethesda Metro Center for $20 million, taking control of a building that has struggled to refill space in recent years. The price reflects roughly an 87% drop from what the asset traded for in 2011 and highlights how many owners of older suburban Class A offices are now choosing between major reinvestment or deep discounts.
Deal details and ownership
In-Rel Properties paid $20 million for the ground lease to 3 Bethesda Metro Center, which was about 52% leased at the time of the sale, according to Bisnow. Brookfield had paid $150.1 million for the same ground lease in 2011 when it bought the building from The Meridian Group, according to a Brookfield press release that pegs the property at roughly 368,400 square feet and shows the ground lease running through 2052.
In-Rel’s pitch for the building
In a statement to Bisnow, In-Rel principal Jackson Siegal said the firm sees "tremendous potential to reposition the property through thoughtful capital investment and active ownership," casting the deal as a value-add play rather than a quick flip. The company is signaling that it plans to lean into a capital-heavy turnaround instead of trying to ride out the current market as is.
What the buyer has done nearby
In-Rel has been busy in the D.C. region picking up older office buildings at significant discounts and then working on renovations and new leases. In a July 2025 company press release about its 2033 K Street acquisition, In-Rel noted it also acquired 7500 Old Georgetown Road in 2023 and has been pursuing upgrades and new leasing there, including signing EagleBank as a tenant, per the In-Rel release. The firm says that hands-on, renovation-focused strategy is the same playbook it plans to use at 3 Bethesda Metro Center.
Why the price plunged
The transaction fits into a broader national pattern in which aging or lower-quality office properties have seen sharp value declines while top-tier, amenity-rich buildings have held up comparatively well. Research from CBRE points to a widening gap between premier and commodity office assets and notes that many secondary buildings will need major upgrades or conversion to stay competitive. For lenders and owners in Montgomery County, that split has created hard choices about whether to commit more capital or accept a reset sale price.
In-Rel says renovation work and tenant outreach at 3 Bethesda Metro Center will unfold over the coming months, with an emphasis on refreshed common areas and added amenities aimed at attracting today’s office users. For Bethesda landlords and local tenants, the deal is a pointed reminder that past sale prices are no longer a reliable guide to current values and that active repositioning is the route many buyers are betting on to capture whatever future office demand emerges.
