The Washington herald., 1921-07-03
FIRM PAYS
TWO MILLION FOR
LEASE ON OFFICE
-
Ten-Story Structure to Be
Sold on Cooperative
Plan.
WuLFORM COMPANY
The New Corporation Will Be
Capitalized at s2,2S6,3OO
By Directors
WuLFORM COMPANY

Allan e walker ana MAJ " hoA4
L. Browning yesterday took title 10
the Southern Building. Fifteenth and
" street,. northwest, for the Allan
z. walker Investment Company
whi.h plans to proceed with the sale
ot tn. structure on the cooperative
plan. The consideration exceeded
sE000.oo0.
The passing of the title Of this
building, located in the heart OF
washington's financial district
,,arxs- one Of the largest realty
transactions in the Capital in years.
The Southern Realty Company was
the seller.
History of Building.
Title to the property was once
held by the Rev. James Gibbons
archbishop of Baltimore, later cardi-
nal. At that time George Wash
inrton University occupied the srte
on which now stands the woodward
Blildfng, and Levi P. Morton had
begin the construction of the Shore
ham Hotel. On the other corner
was wormley's Hotel, famous In
those days as a meeting and eating
place for men prominent In national
politics
A group of Southern business men
gathered at a dinner one evening and
decided to build an ONCE building In
which, to house organizations to pro-
mote trade throughout the South II
was originally planned to have each
State take a door. but this plan was
abandoned and the Southern Build
ing Company was formed The list
of stockholders included many we'll
known Southern business men and
hnanciers- one of whom was John M
Parker. later governor of Louisiana
and candidate for Vice President on
the Progressive party ticket with
ths late Theodore Roosevelt
ChanEed Hands In 1919
Th company completed the
building and operated II until 1913
when IL was sold to the Commercial
and the First National Life 1nsur-
ance companies The latter com
pany then bought complete control.
In 1917 the Southern Realty Cor
poration. comprising about 500 OF
the stockholders OF the First Ma
tional Iusur Ance Company. purchased
the building Suit was later brought
by receivers of the insurance COM
pany to set aside the transfer. The
sale was approved in a decision by
Chief Justice Mccoy in the Supreme
Court of the District and recently
this decision was affirmed by the
Court Of Appeals
The building was constructed orig
Inally by the Southern Building
Company. on the site of the famous
old st. Matthews Church The
structure has q frontage Of 14s feet
on H street and $50 feet on FIJI
teenth street 1t Is bounded on
the north by q twenty-foot alley.
The lot contains 22.z12 square feet
1t Is a modern fre-proof structure.
ten stories in height 1t was COM
pleted in 1910.
offered on Cooperative Plan
Through Allan E walker and
Company. Inc, real estate brokers,
the building is being offered on the
cooperative sale plan. This plan
Is 4 refinement OF those used in
other great cities, with much more
liberal terms for purchasers and
many additional features that make
the idea even more attractive. Success
Of the plan in sale and ownership
Of cooperative apartments has been
% marked from the standpoint of
the purchasers that the idea is being
followed in many other cities.
Part ownership is to be offered
tenants OF the building and others
whore tenants do not purchase, at
aNprfce that Is between 50 and 10
per cent of the cost Of reproduc-
tion today, with the added asset of
location 1t Is true of retail
centeIs that time works many
changes and shifts are very marked,
but the history Of no American city
shows that tho financial district
once established ever has changed.
Reduce COST Of Operation.
II Is claimed for cooperative own
ership of once buildings that the
cooperative spirit will not only i'm
prove the service and make for bet
ter management OF the building, but
that 1t VIII materially reduce the
cost OF operation
As In the cooperative apartment
plan the purpose of the company
wnl be to sell to those who expect
to occupy the part Of the building
purchased.
Under the terms Of sale the pur-
chaser Of any given space WIN max.
nrst payment of q sum equal to
TWO years rental and thereafter
pay . sum equal to two-thirds of
the rental value for a period Of
eleven years and seven nonths
Thereupon the purchaser acquires
the right Of perpetual occupancy
suossct only to the payment of
an agreed proportion Of operating
expenses, less than IS per cent Of
the. rental value
VIII Form Company.
A corporation to be known a.
the Southern Building Owner. Inc
VIII be formed under the law, ~
the State of Delaware. This cor-
poration will be capitalized at So
zSe,3o and viii take title to the
ouilding. Purchaser-stockhoId
wll-ehoose board of directors. vbo
WHi elect offcers to serve without
compensation. U'
As In the case OF eo-opera,iv.
APARTMENTS. the board of director,
composed OF the purchasers. will
protect the purchasers by r.,srvi,v
the right to pass upon subleases
and Releases.
The value Of cold in pres.rv,rr
meat has been shown ~ . -.