This Week's D.C. Deal Sheet
Atlanta-based Noble Investment Group has acquired two hotels in Crystal City, and it plans to rebrand the properties to feature the neighborhood's new National Landing name.
The investor acquired the Hampton Inn & Suites Reagan National Airport and Hilton Garden Inn for a combined $64.3M, the Washington Business Journal reported.
The hotels' previous owner, Sound Hospitality Management, took steps to reposition ahead of Amazon's impending HQ2 debut. The Miami-based company asked Arlington County to reduce the parking needed for the site to construct a residential tower in place of the hotels' shared parking garage.
The project is the latest looking to take advantage of the influx of workers and visitors alike to the new National Landing market. In November, JBG Smith filed plans to transform the former Americana Hotel into a new residential high-rise with 650 units above retail.
SALES
A joint venture between Oliver Street Capital and Bain Capital Real Estate acquired its first industrial properties in the D.C. region. The $90M deal joins a portfolio of over 30 transactions that the joint venture has executed in the Boston area.
The three properties in the deal are located at 7701 Southern Drive in Springfield, Virginia, 4801 Viewpoint Place in Cheverly, Maryland, and 3300 Marlo Drive in Forestville, Maryland, and total more than 500K SF. OSC and Bain plan to pursue additional high-quality industrial infill properties in the market over the next 18 months.
***
Corporate Office Properties Trust sold its only wholesale data center to an investment vehicle managed by Cloud Capital for $222.5M. COPT first acquired the DC-6 data center in Manassas for $115M in 2010, the Washington Business Journal reported.
Columbia, Maryland-based COPT plans to roll the proceeds from the sale into its existing developments, which focus on the defense and IT industries.
Cloud Capital is looking to expand in Northern Virginia's top-flight data center market beyond this acquisition, according to a statement from its CEO and founder Hossein Fateh. Founded in 2020, Cloud plans to build and acquire data centers to operate long-term.
***
Carter Multifamily acquired a portfolio of six multifamily properties thanks to a $318.45M loan from JPMorgan Chase Bank. The single asset, single borrower loan was secured by a team from JLL including Lee Weaver, Melissa Marcolini Quinn, Drew Jennewein, Rob Rothaug, Emily Moallem and Cody Mizelle, according to a press release. Carter declined to name the seller.
***
Newly formed SKS Real Estate Partners acquired its first property, the 198-unit Amber Commons in Gaithersburg, in a joint venture with affordable housing provider MRK Partners for $51.5M. RST Development sold the complex, and CBRE brokered the sale. The new owners plan to preserve the property's naturally occurring affordability through the Low-Income Housing Tax Credit program.
LEASES
Restaurants La Grande Boucherie, Olio e Piu and Washoku Room will occupy the first three floors of The Bank Building, a restored mixed-use building owned by a joint venture between Lincoln Property Co. and Cara Real Estate. Meridian Capital Group President of Retail Operations James Famularo, Director Ben Biberaj and associate Elliot Wygoda leased the 23,500 SF space. Lincoln Property Co.'s Adam Biberaj, Merrill Turnbull and James O’Neil represented the landlord in the deal.
***
US Fitness Holdings LLC will embark on a $1M renovation after acquiring the former Gold's Gym at 46262 Cranston St. in Sterling, Virginia. The regional health club operator will revamp the 50K SF facility with new equipment, a HydroMassage Recovery Studio and several new pandemic-appropriate cleaning systems. The space will be rebranded as Onelife Fitness, the 20th such location in the D.C. region.
***
DSW is moving across the street from the Peterson Cos.' Downtown Silver Spring to the GBT Realty-owned Ellsworth Place at 8661 Colesville Road. The shoe retailer will upgrade its footprint by about 9%, leasing a 17,500 SF space on Level Four of Ellsworth Place. GBT paid $92M for the building in 2018, at the time its largest acquisition, with air rights to build office space on top. The developer also plans to open a food hall in the Silver Spring retail hub this year.
***
Buchanan Partners landed Whole Foods to anchor its Quartz District mixed-use project in Woodbridge, Virginia, the development firm announced. This will be Whole Foods' first location in Prince William County. The Quartz District itself is a 145-acre development created through a joint venture between Buchanan and the Mitchell Phelps family. Plans for the site include 235K SF of office, more than 100K SF of retail and at least 1,000 residential units, according to a press release.
