This Week's D.C. Deal Sheet
The Meridian Group and Wickshire Industrial are scheduled to break ground next week on the first phase of a 2.7M SF industrial park in Virginia, Bisnow has learned.
The initial phase will feature a 1M SF industrial facility at One Logistics Park in Winchester, Virginia. Bethesda-based TMG first acquired the 277-acre property for the industrial park late last year, and the project was expected to cost $150M.
The project is designed to take advantage of the rise in demand from e-commerce in the mid-Atlantic. The master plan for the campus includes an additional 100K SF of retail space for gas stations, quick-service restaurants and other uses.
“We are firm believers that the industrial market — and tenant demand — will remain robust despite economic headwinds,” TMG Senior Vice President Kyle Maurer said in a statement. “Given its location and premier design, our first building is poised to be a key component of users’ supply chain solutions. We are thrilled to finally commence construction on this exciting project.”
SALES
Armada Hoffler sold a 416-unit Maryland apartment community it developed in 2017 for $150M, the REIT announced Monday. Disposing of the property at 10125 Junction Drive in Annapolis allows Armada Hoffler to reinvest equity in new developments, the REIT said in a release. Cushman & Wakefield’s Jorge Rosa and Anthony Liberto represented the seller in the deal. Armada Hoffler declined to disclose the buyer.
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Cadre, a New York-based firm backed by the Kushner family, sold three Rockville buildings totaling 284K SF that were recently converted to life sciences. MetLife Investment Management acquired Key West Crossings at 9713, 9715 and 9719 Key West Ave. for $148M, the Washington Business Journal reported. Cadre acquired the properties for $90M in 2020.
MILESTONES
Mayor Muriel Bowser cut the ribbon for two all-affordable projects backed by the Office of the Deputy Mayor for Planning and Economic Development. The 93-unit Providence Place was built at 594 50th St. NE on land owned by the Progressive National Baptist Convention. DMPED provided an $11.7M grant for the project. The 86-unit Strand Residences at 5129 Nannie Helen Burroughs Ave. NE was financed with a $15.6M grant from DMPED.
Both projects were part of the New Communities Initiative, a program that replaces "severely distressed subsidized housing" with new development, per DMPED. In this case, 63 units were designed to replace housing from the Lincoln Heights and Richardson Dwellings in Ward 7.
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Hyattsville and Prince George's County officials are scheduled to join executives from Perseus TDC at the groundbreaking for The Six on Thursday. The 316-unit development, which will also feature more than 2K SF of ground-floor retail, will have at least 75% of its units affordable for low- and middle-income renters. The development, located in an opportunity zone at 6400 America Blvd., is scheduled to begin pre-leasing in the second quarter of 2024.
LEASES
Hines announced a new round of retail tenants at the 66-acre The Parks at Walter Reed development. A Whole Foods-anchored plaza fronting Georgia Avenue is slated to feature fast-casual restaurant Mezeh, ice cream shop The Charmery and salon Nailsaloon. The three new tenants will be in the 109-condo Kite House building. An unnamed national bank also signed a lease at 1155 Dahlia St., per a press release.
CBRE represented the landlord in the leases. The project is receiving "immense interest" from prospective tenants, Hines Senior Managing Director Chuck Watters said in a statement. Hines is partnering on the project with Urban Atlantic and Triden Development.
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Vida Fitness signed a 50K SF lease for a new office and retail building that is expected to deliver in 2014 at Comstock’s Reston Station, Bisnow reported Thursday. The D.C.-based gym chain will occupy three floors and feature amenities like a penthouse pool club, lobby bar concept, and studios for spin and other classes. The gym will be located at 1845 Reston Row Plaza, the fourth office building in the mixed-use development. It neighbors the 250-room JW Marriott hotel, which is also under construction.
PERSONNEL
Hotel management firm PM Hotel Group has hired two vice presidents to support its expanding business development team. Raina Taillon, vice president of lifestyle and luxury, joins PM Hotel Group after positions at Sage Hospitality Group, LaSalle Hotel Properties and Hilton. David Hale, vice president of development and acquisitions, joins PM Hotel Group after positions at Paramount Hotel Group, Spire Hospitality and Hilton.
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Wei Xie left CBRE to lead JLL’s east region for research, Bisnow reported this week. Xie spent nine years at CBRE and was the mid-Atlantic director of research. In her new role, Xie is based in JLL’s Tysons office. She will report directly to Julia Georgules, head of Americas research at JLL, according to a press release.
