This Week's D.C. Deal Sheet
Boyd Watterson Asset Management acquired a Southwest D.C. office building in a $14.75M deal, property records show.
The 33K SF building at 4049 South Capitol St. SW is occupied by the D.C. Department of Human Services. Harbor Group International sold the building and its adjacent parking lot. It had owned the property since 2017, according to its website.
A representative for Cleveland-based Boyd Watterson declined to comment on the deal. The asset management firm has been on a spree of $100M-plus acquisitions in the D.C. area in recent years, including a 355K SF office building in Arlington formerly owned by Shooshan Cos.
Its deals have come in part through its State Government Fund, whose acquisitions head, Joseph Capra, signed the deed for the Bellevue deal. Governments have been taking a hard look at their office portfolios lately, as the pandemic has demonstrated the possibilities of remote work.
LEASES
New York-based Xylem Inc. is moving its headquarters to D.C. The water technology company will take 17K SF in the second phase of Brookfield's The Yards development, the Washington Business Journal reported. Its new headquarters is close to the new D.C. Water building, and Xylem has worked with the District agency in the past. The Yards began vertical construction for its first office building in the Capitol Riverfront development in 2020 and is competing with other waterfront areas for tenants.
PLANS
The Parkridge Center in Manassas may be getting a new housing component, according to plans filed by the shopping center’s owner. Bethesda-based Parkridge Center Retail, an LLC created through a joint venture between Buchanan Partners and Willard Retail, filed plans with Prince William’s County to redevelop the current site of an IMAX movie theater into 363 housing units, InsideNova reported. Buchanan principal Russ Gestl told the publication that the retail shopping center has good visibility but little else going for it, and a residential component could boost sales for the retail that will remain at the site.
FINANCING
Amazon is investing $81.7M in a pair of Prince George’s County multifamily projects located near Metro stations. The combined below-market loans will help ensure affordability at the 700-plus units for those making below 80% of the area median income. Gilbane Development Co.’s Atworth College Park is planned for 451 units and ground-floor retail at the College Park Metro station. Urban Atlantic’s The Margaux is slated for 291 units and “market-rate finishes," and is located near the New Carrollton Metro station. The pair of buildings likely aren’t the last located near Metro stations to benefit from Amazon’s Housing Equity Fund, Bisnow reported.
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A 145K SF office building in Rockville has been significantly devalued, undermining a CMBS loan for which the property is collateral. The office building at 255 Rockville Pike lost its sole tenant, Montgomery County, in recent months, and the property's value went from $56.15M in 2007 to $19.9M, Trepp reported Tuesday. New York-based Eldridge Inc. is listed as the owner of the property, according to Montgomery County records.
CONSTRUCTION MILESTONES
Trader Joe’s opened another Montgomery County store Thursday, further expanding its holdings in the D.C. region. The store at 7900 Wisconsin Ave. in Bethesda is the ninth Maryland location for the national grocery chain, Bethesda Beat reported. Trader Joe’s also operates five locations in D.C.
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George Mason University set an April 6 groundbreaking for a massive new technology-focused campus in Arlington. The 360K SF development will bolster Virginia’s Tech Talent Investment Program, which is intended to educate thousands of future tech workers and played a role in the state attracting Amazon's HQ2. The state pitched in $84M for George Mason’s new campus, which is scheduled to be completed in 2025, InsideNova reported.
PERSONNEL
Events DC President and CEO Greg O'Dell plans to leave the quasi-public agency in April. Oak View Group announced that O’Dell would move into a role as president of venue management, reporting to OVG360 CEO Chris Granger. The Oak View division advises the sports and live entertainment industries, according to a press release.
O’Dell has been working with the District government in various roles since 2007, according to his LinkedIn profile. He originated his role at Events DC, which was formed via a merger between the Washington Convention Center Authority and the D.C. Sports and Entertainment Commission. O’Dell has shepherded several major developments in his role, including the Entertainment and Sports Arena at St Elizabeths East.
