This Week's D.C. Deal Sheet
A new industrial space acquisition near the Baltimore-Washington Parkway is the latest domino to fall in a wave of deals for properties that serve as last-mile distribution facilities.
Fundrise bought a 253K SF distribution facility in Hanover, Maryland, for $49.6M, according to Securities and Exchange Commission filings. The investor revealed the acquisition was part of a core-plus strategy to capitalize on the demand for industrial space, and the deal included a 100% leaseback to the seller, which property records show as United Stationers Supply Co.
“This section of the mid-Atlantic is expected to see continued development in the near future, both in terms of population growth and economic expansion,” the filing says. “Alongside the growth in the area’s workforce, we expect demand for e-commerce infrastructure in the area to grow, giving well-located and accessible distribution centers like this one significant potential value.”
Fundrise expects to receive rental income immediately from the facility, constructed in 1986, and also anticipates the site will appreciate in value over time.
The site is 30 miles from D.C. and 12 miles from Baltimore, where major infrastructure projects are charging up the industrial market.
SALES
Gelfund Real Estate Opportunities acquired two multifamily properties in Anne Arundel County this week from Promark Properties. The $40.2M deal was brokered by Dean Sigmon, Robin Williams, Justin Shay and Michael D’Amelio of Transwestern. The two value-add communities included in the deal are the 150-unit Annabal Apartments at 7491 East Furnace Road and the 55-unit Glen Burnie Town Apartments at 201 Crain Highway N, both in Glen Burnie. Promark acquired and renovated both properties over the past five years and is now looking to trade up to larger properties in the area, Commercial Observer reported.
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Perseus TDC is planning to swap out a 65K SF office building for new residential in Bethesda. The developer purchased the office at 4405 East-West Highway from Klinedinst Management this week and plans to spend the next two years going through entitlements and design before ultimately tearing down the building currently on-site. Perseus declined to disclose the sale price to Bisnow, but property records show Montgomery County assessed the site's value at $10.9M last year. The developer plans to make the roughly 300-unit building predominantly market-rate, with 15% set aside as affordable through Montgomery County’s Moderately Priced Dwelling Unit Program, Bisnow reported.
CONSTRUCTION MILESTONES
JBG Smith is pressing forward on plans to build more than 10K SF of dining and amenities in National Landing. The developer plans to transform the 1.6-acre Water Park at 1601 Crystal Drive with 4,875 SF of new food and beverage, including nine restaurant kiosks with seating lining the park's perimeter. Water Park will also feature a 1,400 SF full-service restaurant and a bar.
Separately, the developer began construction on a new 5,587 SF restaurant in the courtyard in front of 2121 Crystal Drive. The current vision for the restaurant is a collaboration between JBG Smith, Chef Enrique Limardo and the Seven Restaurant Group. Named Surreal, the plans include year-round outdoor seating, according to a release.
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Studio Theatre is reopening in Logan Circle after a two-year, $20M renovation. The multiple-theater complex at 14th and P streets NW will hold an official ribbon-cutting March 31. The renovation brought updated infrastructure, both theatrical and not, to the building. The campaign also "reconceptualized" the main space, now named the Victor Shargai Theatre, so that it now contains upgraded production technology but no fixed seats to allow greater flexibility.
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Brookfield will partner with Urby in Navy Yard for the multifamily operator's first D.C. location. The developer plans to start construction on the 467-unit building in May and deliver in 2024. The building’s Urby-run amenities include a 4K SF gym, pool, coworking space, gardens and farm plots for tenants. Urby is a joint venture between Brookfield and Barry. The building will also have public-facing amenities, including a café and 20K SF of retail, Bisnow reported.
PLANS
Stonebridge is planning 800K SF of life sciences development in Montgomery County. The developer on Thursday announced its EvolutionLabs concept, which is planned to bring five purpose-built life sciences buildings across two sites, one near Pike & Rose and one in Gaithersburg. Stonebridge is partnering with Principal Real Estate Investors at the latter site, where the JV hopes to develop 250K SF in total once the project is complete, Bisnow reported.
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The U.S. Tennis Association's Mid-Atlantic Section is planning a massive facility in Loudoun County. Plans for the headquarters include 36 courts on the 20-acre property, which USTA has under contract, WBJ reported. The development would include 35K SF of amenity space, including conference rooms, classrooms, a pro shop and more.
PERSONNEL
A former tenant advisory specialist is leaving Cushman & Wakefield for Colliers' Tysons Corner office, the latter firm announced Thursday. Chaise Schmidt will be senior vice president, focusing on tenant needs throughout the firm's Northern Virginia and D.C.-area portfolio. Schmidt was part of a team that landed the 205K SF Appian Corp. HQ in Tysons and a 120K SF deal for PBS in National Landing, according to a release. Prior to her six years at Cushman & Wakefield, Schmidt also spent six years at Transwestern.
