(Bloomberg) -- Washington’s Watergate office building, madefamous by the political scandal that brought down President RichardM. Nixon, is under contract to be sold, according to financingdocuments obtained by Bloomberg.

New York real estate investment firm Steinbridge Group andDallas-based Lincoln Property Co. are buying 2500 and 2600 VirginiaAve. NW, also known as Watergate East, for $107 million, accordingto the document by brokerage Holliday Fenoglio Fowler LP.

The 12-story, 270,000-square-foot (25,100-square-meter) officeproperty in the Foggy Bottom neighborhood, about a mile westof the White House, is part of a six-building complex that alsoincludes co-op apartments and a hotel thathas just been renovated. Burglars in 1972 broke into the officebuilding’s 11th floor, then the headquarters of the DemocraticNational Committee, a crime that ultimately led to the unravelingof the Nixon presidency.

Earlier sale

The seller is a partnership led by Greenfield Partners LLC, aWestport, Connecticut-based real estate investment-management firm,said a person with knowledge of the transaction, who asked not tobe named because the details are private. Washington-based PenzanceCos., said to be part of the partnership, paid $76 million for itin November 2011, data from Real Capital Analytics Inc. show. Thatsale resolved a “troubled situation,” according to Real Capital, inwhich the property was controlled by a creditor after ownerBentleyForbes fell into debt following the 2008 financialcrisis.

Russ Colchamiro, a spokesman for Steinbridge Group, said thecompany won’t comment. Calls to Mack Pogue, founder and chairman ofLincoln Property, and Tim Byrne, its president, weren’t returned.Representatives for Greenfield and Penzance also didn’t returncalls.

Principals of Steinbridge have managed and leased more than $12billion of institutional capital in the U.S., Europe and the MiddleEast, according to the firm’s website. Steinbridge’s chiefexecutive officer is Tawan Davis, who was vice president for realestate transactions at the New York City Economic Development Corp.during the administration of Mayor Michael Bloomberg. The formermayor is the founder and majority owner of Bloomberg News parentBloomberg LP. Davis later worked as chief investment officer atPeebles Corp., run by developer R. Donahue Peebles.

Lincoln Property has developed more than 75 million square feetof office space and manages 29 million square feet in theWashington area, according to the financing document for theWatergate purchase.

Office tenants

The building has about 205,000 square feet of offices, with therest retail space, according to the person with knowledge of thedeal. About 14% of the office space is vacant, and askingrents are about $47 a square foot, according to leasing-datafirm CoStar Group Inc. Tenants include the National Trust forHistoric Preservation, George Washington University and SagePublications.

The owners of the hotel, which shares a wall with the officebuilding, recently completed a $125 million makeover by Israeliarchitect Ron Arad. The project restored the “luxury and glamour”of the 1960s, when it was new, Jacques Cohen, founder of EuroCapital Properties, said in a June 14 interview on BloombergTelevision.

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