This Week's D.C. Deal Sheet
Stamford-based OneWall Communities is expanding its Maryland holdings, acquiring a garden-style apartment complex in Temple Hills for $97M.
The investment firm bought the 459-unit Heather Hill garden apartment complex at 5837 Fisher Road from Hampshire Properties, it announced Friday. OneWall partnered in a joint venture on the deal with an international institution, which a spokesperson declined to name.
The 21-acre property contains 18 low-rise apartment buildings, as well as amenities like an Olympic-sized swimming pool, business center and on-site Metrobus stop. The firm plans to keep the property affordable for those making up to 120% of the area median income.
Transwestern Executive Vice Presidents Dean Sigmon and Robin Williams, Vice President Justin Shay and Senior Associate Michael D’Amelio represented OneWall in the deal. CBRE’s Joanne Williams and Steven Doherty assisted with financing the deal through Fannie Mae.
LEASES
Industrious has signed a lease in the remainder of office space in Roadside Development’s City Ridge development. The coworking operator, which traditionally operates via management agreements, signed a 41K SF lease, bringing the more than 160K SF of offices to 100% leased, Washington Business Journal reported. Roadside plans to bring the entire development online this year, including four multifamily projects, retail space and amenities. That includes recently announced restaurants King Street Oyster Bar and Tatte Bakery, which will take up nearly 9K SF combined when they open this fall, as well as D.C.'s first Wegmans.
CONSTRUCTION MILESTONES
Mayor Muriel Bowser joined D.C. Housing Authority officials to break ground at the Kenilworth 166 project Friday morning. The $83M project at 45th Street SE is a redevelopment of the Kenilworth Courts complex. Once completed, the first phase of redevelopment will deliver 166 units, 118 of which will be “deeply subsidized replacement units” for seniors, and the other 48 will be affordable for those making up to 50% of area median income, according to a press release. The project has received support from the U.S. Department of Housing and Urban Development, which provided a $300K Choice Neighborhoods Planning Grant in 2011 and vouchers for residents who need to move during the redevelopment. The development team includes The Michaels Organization and The Warrenton Group.
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Howard University and Rock Creek Property Group announced they would break ground on a $62M mixed-use project at George Avenue and Fairmont Street NW this month. The 140K SF development is slated to open with 93 fully furnished residential units for graduate students and recent graduates, as well as office space for the university, WBJ reported.
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WhyHotel opened a new multiuse hotel concept at 2500 Pennsylvania Ave. NW on March 1. The former hotel has been reprogrammed to include fully furnished space for multifamily and hotel uses with a “hospitality-focused staff,” according to a press release. Bernstein Management Corp. partnered with WhyHotel at the 108K SF site last year. The 10-story, 124-room building was formerly an Avenue Suites, which shut down the location in 2020, Commercial Observer reported.
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The Marriott Bethesda Downtown hotel at 7707 Woodmont Ave. opened its doors Tuesday, Bethesda Magazine reported. It is the 8,000th location for the Bethesda-based hotel brand, David Marriott, the company’s incoming chairman, said at an event in the hotel’s lobby. The 12-story hotel has 245 rooms, plus a ground-floor restaurant and bar, and is expecting to open a rooftop bar this spring.
FINANCING
A 27-unit all-affordable project in Truxton Circle received the first pre-development loan from the D.C. Green Bank’s Navigator program. The program, created through a partnership with Inclusive Prosperity Capital, provides funding prior to construction for energy-efficient upgrades to multifamily buildings. The developer, Mi Casa, is planning to make the Barnett-Adan development net-zero, with the units reserved for those making between 30% and 80% of the area median income and permanent supportive housing. Plans also include 3K SF of office space for Mi Casa. The pre-development loan provides Mi Casa with $256K of financing.
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A joint venture between Building and Land Technology and Green Hollow Capital Partners acquired The Bethesdan hotel at 8120 Wisconsin Ave., backed by $57.6M in acquisition financing from Fortress, Commercial Observer reported. A Newmark team from New York assisted in the transaction, led by Dustin Stolly and Jordan Roeschlaub. The 15-story hotel was repositioned to operate under the Hilton flag just before the pandemic and includes 270 guest rooms and 1,633 SF of retail space. Its new owners say they got a pandemic-depressed price for the building and are looking to stabilize the property over the next five years.
PERSONNEL
Stream Realty Partners hired four senior vice presidents from CBRE for its new Northern Virginia office, as well as an associate. Jeff Roman and Erik McLaughlin will become co-managing directors, and Malcolm Schweiker and Carter Byrnes will become executive vice presidents. Jaclyn Purzycki will go from an associate at CBRE to senior associate. In a release, McLaughlin said the consolidation of the commercial real estate provider space made it harder to serve clients, Bisnow reported.
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Houston-based The Hanover Co. is pushing into the Mid-Atlantic industrial space, promoting Dan Gordon to be regional development partner of newly created division Hanover Industrial. Gordon, based in D.C., will be responsible for overseeing acquisitions and development of industrial properties for a private real estate company historically focused on multifamily assets. Hanover first announced it was entering the industrial space in December, citing rising demand in the sector, which is fueled in part by e-commerce and other market forces. The developer is already active in the D.C. multifamily space. It is constructing a 377-unit multifamily project in Brookland.
