Some groups become landlords.

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Washington, D.C.-based Independent Sector (IS) paid $30.5 million for a nine-story, 48,000-square-foot building at the end of February that it hopes will become a center for nonprofits. The lobbying coalition initially planned to lease a new space after outgrowing its current space and increased rent. But after examining the financials, it made sense to purchase property, said Diana Aviv, president and CEO.

After examining six or seven leasing options, the organization realized that within seven years, without raising any money for this building, "we would be at the same place we'd be if we were renting," Aviv said. "It turned out to be financially cheaper for us to buy the building than to rent,"

The decision to buy was based on "what was the best financial model for this organization" she said, adding that the District of Columbia's nonprofit financing also made it very attractive.

The softening housing market hasn't affected Washington, D.C.'s central business district, Aviv said, which has a 5-percent vacancy rate. The only buildings small enough that could house only IS were three- and four-story walkups, and there are very few condo arrangements to purchase an entire floor.

Currently housed in one floor at 16th and L streets, IS will occupy three floors at the new location at 18th and M streets. Aviv hopes to move in before the end of this year. The remaining floors will be leased and managed, for which IS will hire outside firms to do the work.

"We see this as a central location for a variety of nonprofit organizations," said Aviv. "We've had interest from a number of national nonprofits, foundations and charities that are located in other parts of the country, that are interested in having a Washington presence and exploring with us the possibility of coming in together and having a nonprofit space so that they can share the benefits of all being together ... and at the same time not have to build up their own separate space," she said.

"Our interest is in creating a stable model for ourselves of increasing the sustainability of Independent Sector." The goal is to increase sustainability and make sure future dollars are going toward program, not operating costs, in a stable, predicable and reliable way and creating the kind of state-of-the-art center that will be a place for the nonprofits, foundations and charities around the country to come and to feel is home to them and for our local groups to feel very comfortable being a part of it, she said.