This Week's D.C. Deal Sheet

Nonprofit affordable housing developer AHC Inc. is bringing in a new leader to right the ship.

Paul Bernard will serve as the organization's new president and CEO starting April 4, AHC Inc.'s board of directors announced.

Bernard, who was most recently the executive vice president of advisory and educational services at the Urban Land Institute, is taking over at a tumultuous time for both the nonprofit and its tenants.  

AHC is in the process of getting out of day-to-day management, turning over all of its properties to third-party operators. That process, which was initiated after intense scrutiny from public officials in December, is still underway, a spokesperson told Bisnow. 

To date, 11 properties have been transferred to Harbor Group, Drucker + Falk and Paradigm Management, the spokesperson said. That's roughly a third of AHC's portfolio.

AHC has stayed active in the market, though, partnering with FCP and Insight Property Group, to acquire a 245-unit multifamily building at 9701 Summit Circle in Upper Marlboro, Maryland.

In May 2021, CEO Walter Webdale announced his retirement after reports of poor conditions at the nonprofit's owned and managed Serrano Apartments complex. Webdale was succeeded by Susan Cunningham on an interim basis; she will now be replaced by Bernard.

Prior to his time at ULI, Bernard also served as vice president at Enterprise Community Partners, senior vice president of principal investments at Walker & Dunlop, and public pension fund adviser at MMA Realty Capital, according to a release. 

MILESTONES

Rooney Partners and Bozzuto have begun pre-leasing on the east tower of Faraday Park in Reston, with move-ins starting this month. The first portion of the 400-unit development started lease-up in March 2021, and it is now over 70% leased, according to a press release. The east tower has a unit mix ranging from studios to three-bedrooms, with footprints of 465 SF to 1,500 SF. The mixed-use development contains ground-floor retail, 11,500 SF of indoor amenity space, and is a half-mile walk from the Wiehle-Reston Metro station.

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George Mason University is planning to celebrate the groundbreaking for Fuse at Mason Square, the 350K SF centerpiece of the university’s Arlington campus on Wednesday. Mason Innovation Partners is working with Edgemoor Infrastructure & Real Estate to develop the LEED Platinum building, which they estimate will be complete in summer 2025. The campus, located at the corner of Fairfax Drive and North Kirkwood Road, is designed to serve as a research facility and technology and business incubator. George Mason is one of several educational institutions with plans to expand its footprint in Northern Virginia, where Amazon’s HQ2 is expected to put tech talent at a premium.

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The Chick-fil-A at Fort Totten officially opened Thursday, and already appears to be drawing lines of cars. The location at 220 Riggs Road NE will hire 65 full-time and part-time employees, according to a press release. The College Park, Georgia-based fried chicken brand that is closed on Sundays is located across Third Street NE from JBG Smith and Lowe Enterprises’ Fort Totten Square apartments, which houses a ground-floor Walmart.

DEALS

WC Smith sold a 62-unit apartment community in Anacostia to Ernst Equities in a $6.8M deal, property records show. The Alexander Gardens community is located at 1615 17th St SE. Herb Schwat of Greysteel represented WC Smith in the sale. In a statement provided to Bisnow, Ernst Equities founder and Managing Partner Felipe Ernst said: "The asset is being delivered in great shape and we look forward to preserving the affordable housing stock in historic Anacostia."

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First National Realty Trust has acquired the shopping center at 15802 Crain Highway in Brandywine, Maryland. The deal was financed by a $42.5M first mortgage loan arranged by Seven Hills Realty Trust, according to a press release. The 231K SF shopping center is anchored by a Safeway. A joint venture between Velocis and Katz Properties sold the property for $64M and was represented by Jordan Lex and Daniel Naughton of JLL, Commercial Observer reported.

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Star Malaysian chef Rashidin Abdul Rashid is planning to open a 10K SF restaurant in Tysons Galleria, the latest deal to remake Brookfield’s former Macy’s department store space. Chef Mamu, as he’s also known, will take the second floor of the space, joining Darden Restaurants’ Yard House and other retailers in the building. Rashid received financial backing from the same investors behind Pepe Moncayo’s Cranes restaurant, which has a Michelin star. Nick Papadopoulos of Papadopoulos Properties repped Rashid and Nick Marona repped Brookfield in-house, the Washington Business Journal reported.