This Week's D.C. Deal Sheet
Trammell Crow is partnering with Principal Real Estate Investors to construct a major new spec life sciences development in Frederick.
Plans for the project, named Jefferson Technology Park, include two 145K SF clean-room production buildings and two three-story, 100K SF "lab, research and biodiscovery buildings," according to a press release.
The labs will also be connected by a 10K SF amenity hub, which will feature a coworking space, conference rooms, a fitness center and a café.
"Jefferson Technology Park is a unique life science campus development opportunity that will further reinforce Frederick as the northern anchor of the I-270 Life Sciences Corridor," Rob Klinkner, managing director of the eastern states region for Principal said in the release. "Jefferson Tech will be an exciting addition to the market, and we are looking forward to continuing our strong joint venture partnership with Trammell Crow to deliver this project.”
The developers expect construction to begin in September and complete in late 2023. CBRE's Frank Graybeal and Kevin Reap were retained by the joint venture to handle marketing and leasing.
The project is a major investment in the life sciences corridor along I-270, which is the third-fastest-growing market in the country, according to CBRE.
Trammell Crow and Principal's new campus joins a 2M SF life sciences cluster in Frederick, according to the developers.
SALES
A high-profile Philadelphia developer made its first foray into Washington, D.C., this week, snapping up a pair of JBG Smith-owned office buildings for just over $200M. Post Brothers, a private developer specializing in multifamily, acquired the Universal North and Universal South offices at 1825 and 1875 Connecticut Ave. NW thanks in part to a loan from an affiliate of Mack Real Estate Credit Strategies totaling $129.7M. The buildings, which total 762K SF, are across T Street from the Washington Hilton hotel north of Dupont Circle. They appear to be prime candidates for an office-to-residential conversion, given the District’s focus on the strategy amid historically high office vacancies the properties’ advanced age and their new owner's specialty.
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Finmarc Management sold an 8.8-acre Herndon Corporate Center parcel to Stanley Martin Cos. in a $21.34M deal, the seller announced Wednesday. The property currently contains four office properties, three of which Stanley Martin plans to immediately demolish and a fourth that the developer plans to demolish later. In their place, Stanley Martin plans to build 55 traditional townhomes and 56 two-over-two townhomes. The developer plans to begin construction later this year. Paul Norman Jr. and John Pellerito of Cushman & Wakefield represented Finmarc in the deal.
CONSTRUCTION
Foulger-Pratt is planning to begin the demolition process for the Landmark Mall early next month, Alexandria Living magazine reported. The developer will tear down all existing structures except a parking garage, paving the way for a 4.2M SF redevelopment anchored by a new Inova hospital. Renamed West End, the site is also slated to feature up to 2.7M SF of residential space and 285K SF of retail space once completed.
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Monday Properties, owner of several major office properties in Rosslyn and elsewhere in the region, delivered its first Northern Virginia apartment building this week. The 300-unit property at 2000 North Beauregard St. is located in an opportunity zone and received a $66.8M construction loan from EagleBank. Monday Properties has been expanding its multifamily portfolio of late, with 3,600 units currently in the pipeline, the real estate firm said in a press release.
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Liberty Place, a 71-unit, all-affordable housing project in Mount Vernon Triangle opened on Tuesday with a ribbon-cutting attended by Mayor Muriel Bowser and other officials. Fifty-three of the units have been preserved for households earning below 50% of the area median income, along with 14 units of permanent supportive housing and four units for households earning at or below 60% AMI. The affordable project is part of the Central Washington planning area, where Bowser is calling for 1,040 new affordable housing units by 2025. The new development brings the planning area to 27% of that goal.
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Douglas Development broke ground on a new 33K SF spec industrial development in D.C. this week, one of the first of such property types to commence construction in the city in years. The property at 2266 25th Place NE is scheduled to complete construction in Q4 of this year. John Dettleff, executive managing director of JLL's Metro D.C. industrial team, is overseeing leasing for the development, and he told Bisnow on Tuesday he expects there will be strong demand for the facility thanks to its proximity to dense residential neighborhoods in need of last-mile delivery solutions.
FINANCING
Bethesda-based Excelsa Holding raised a $154M real estate equity fund from international investors in only three months, the Washington Business Journal reported. The firm specializes in value-add and core-plus properties and is mostly looking to invest in multifamily properties. Excelsa was founded by Bassam Yammine, former co-CEO of Credit Suisse Middle East and North Africa. Though Excelsa is based in the D.C. area, the new fund will be used for opportunities both in Greater Washington and the Sun Belt, WBJ reported.
