This Week's D.C. Deal Sheet
The Mortgage Bankers Association renewed its Downtown D.C. lease, garnering more than $4M in rent savings as the real estate finance lobbying firm kept its footprint more or less the same.
Avison Young's Laura Peterson, Bruce McNair and Will Travis represented the tenant in securing the lease, which is for roughly 34K SF and runs through 2035.
"We are proud to have helped MBA remain in downtown Washington, DC," McNair, an Avison Young principal, said in a statement. "MBA has made a long-term commitment not just to Washington, but also to the Central Business District, its home for decades. We could not be happier for MBA, its employees and its members."
The building, located at 1919 M St. NW, owned by 1919 M Street Associates Limited Partnership and managed by JBG Smith, was constructed in 1967. Under the terms of the lease, MBA received "substantial" funding to redesign its space for hybrid work and a commitment from its landlord that renovations of the common areas will take place.
LEASES
Montgomery College’s Germantown campus is getting a new, 140K SF manufacturing facility. Developers Minkoff Development and South Duvall signed a lease with Hughes Network Systems to build a satellite broadband and networking equipment production facility, which will partner with the college on training and educational initiatives, per a press release. Scheer Partners’ Henry Bernstein, Matt Brady and Aaron Gambini brokered the deal for the landlord, and CBRE’s Kevin Wille, Nadia Kahler and Brad Wilner repped the tenant.
SALES
GI Partners spent $220M to acquire an 860K SF portfolio of office buildings from Turnbridge Equities and Fundamental Advisors, Bisnow reported Wednesday. The portfolio includes two properties in Fairfax and one each in Herndon, Sterling and Chantilly. The portfolio is 96% leased to defense contractors like Lockheed Martin, General Dynamics, Boeing and Northrop Grumman. Eric Berkman, Shaun Weinberg and Kevin Sidney of Cushman & Wakefield represented the seller in the deal.
MILESTONES
A new 323-unit residential project at The Parks at Walter Reed has begun lease-up, and it is scheduled to start move-ins in October. The Hartley, located at 7150 12th St. NW, is anchored by a 42K SF Whole Foods and will have amenities including 24/7 concierge service, coworking space and a sixth-floor penthouse. Thirty-two of the units are designated as affordable, and the building has 16K SF of additional retail.
The Parks, a 66-acre redevelopment of the former Walter Reed Army Medical Center, is slated to total 3.1M SF of mixed-use development when fully built out by developers Hines, Triden Development Group, Urban Atlantic and joint venture partner Bridge Investment Group. Bozzuto is the property manager for The Hartley.
***
MGAC has been tapped to manage a 427K SF mixed-use redevelopment that has been on tap for years near Union Station. RMR Group is set to remake the office at 20 Massachusetts Ave. NW, which lost its federal government anchor tenant, with new retail, a 271-key Royal Sonesta Hotel comprising five floors and office space comprising the top four floors, according to a press release from MGAC. The redevelopment, led by DPR Construction and designed by Leo A. Daly, is scheduled to be completed in spring of next year.
***
CitizenM’s 296-key NoMa hotel is scheduled to open Aug. 15. The property, located at 1222 First St. NE, is at the center of a lawsuit filed earlier this year alleging the development’s insurer, Allianz Global Risk US Insurance Co., denied an insurance claim after the property suffered rain damage during construction, the Washington Business Journal reported in June. Nevertheless, when the hotel opens next week it will join a growing number of budget- and youth-focused hotels near Union Market, including the Selina Union Market that opened at 411 New York Ave. NE earlier this summer.
LISTINGS
Munich Re is marketing a 600K SF Downtown D.C. office building valued at $500M, Bisnow reported Tuesday. Cushman & Wakefield has been retained to market the 92% occupied property known as Columbia Square, located at 555 13th St. NW. The building's largest tenant, Hogan Lovells, has been in Columbia Square since it was developed in 1987, and today occupies 80% of the building. Its lease expires in 2033. When the law firm renewed its lease, it was allowed to pursue major renovations, including a rooftop deck. Over the past five years, Columbia Square has gone through renovations totaling $17M.
FINANCING
A longtime shopping center development and management firm landed a $30.5M refinancing for a 248K SF Williamsburg, Virginia, shopping center, courtesy of Colliers. The loan, provided by Canadian lender Romspen, will allow Developers Realty Corp. to improve and stabilize New Town Shops on Main over the next decade, according to a press release. Dylan Kane and Zach Redding led the Colliers team on the deal. The shopping center is anchored by tenants like Planet Fitness, which just signed a 10-year lease, and Regal New Town Cinemas, which just extended its 42K SF lease through the end of 2032.
***
Mayor Muriel Bowser and the Office of the Deputy Mayor for Planning and Economic Development announced a new $170M funding round through the Housing Production Trust Fund. The vast majority of the units funded through this round are set to be affordable to those making less than 50% area median income. A spokesperson for the Department of Housing and Community Development said the funding round was made possible thanks to the $445M appropriated to the trust fund for fiscal year 2023. The projects include Jair Lynch’s senior living building at the McMillan filtration site redevelopment, NHT Communities’ Congress Heights Metro project and The NRP Group and Marshall Heights Community Development Corp.’s Benning Road Metro project. Bisnow reported the full list of projects Thursday.
PERSONNEL
Frontier Development & Hospitality Group has hired Morgan C.B. Miles to serve as vice president of acquisitions and development, the firm announced this week. In her role, Miles will lead all acquisition and development activities for Frontier. Prior to her role, Miles served as development director at Brightview Senior Living. Over her 16 years of experience in commercial real estate, she also served as senior development manager at Hoffman & Associates, where she oversaw the development of the Canopy by Hilton and projects on The Wharf's second phase. She's also had roles at Strategic Property Partners, M&T Bank and Archon Group.
CORRECTION, AUG. 17, 4:10 P.M. ET: A previous version of this article misstated Bozzuto's involvement in The Hartley, where it serves as property manager. The story has been updated.
