This Week's D.C. Deal Sheet
Richmond-based Capital Square has acquired a 4-year-old Woodbridge multifamily community on behalf of a Delaware Statutory Trust.
The firm acquired the 402-unit Rivergate development, located at 13175 Marina Way, for $98M, property records show.
The property, built in 2018, was acquired by CS1031 Rivergate Apartments, DST. Capital Square specializes in tax-advantaged real estate investments.
The acquisition is part of a trust investment offering from Capital Square, which is seeking $46.5M in equity from investors. A Delaware Statutory Trust allows investors seeking 1031 exchanges to buy in as part-owners to a property, allowing them to defer capital gains taxes without acquiring an entire property outright.
In a statement, Capital Square founder and CEO Louis Rogers said this is the latest in a string of acquisitions for the firm's 1031 exchange/DST program, which includes apartment properties in the Richmond area. Capital Square also owns multifamily properties in Loudoun County and Gainesville, Virginia.
FINANCING
Urban Atlantic and Triden Development Group received $11.5M in debt financing from United Bank for the acquisition and development of townhomes at The Parks at Walter Reed. The 50-home community, dubbed Aspen Square at The Parks, will be built by NVHomes, with sales set to begin in late fall or early winter of this year, per a release. Four of the units, which will average just over 2K SF, will be held as affordable.
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Grosvenor closed on an $82.1M first mortgage from Helaba for 1500 K St. NW, the property owner and developer announced Monday. The deal comes after Grosvenor completed a $20M renovation for the 262K SF McPherson Square office property, which was first constructed in 1928. The renovations included a redesigned lobby and fitness center, plus a new roof and rooftop lounge. Eastdil Secured negotiated the mortgage on Grosvenor's behalf.
MILESTONES
Planet Fitness opened its Gallery Place location this week, the New Hampshire-based fitness chain announced. The nearly 20K SF location at 783 Seventh St. NW is in a space formerly operated by Washington Sports Club and owned by an affiliate of Oxford Properties. Washington Sports Club closed the location during the pandemic in June 2020.
The Gallery Place Planet Fitness is one of three in D.C. The chain also has locations in Ivy City and Penn Branch. PF Growth Partners, a franchise division of Planet Fitness, owns the Gallery Place location.
PERSONNEL
The Meridian Group has executed its succession plan, elevating Chief Financial Officer and Chief Operating Officer Mark King to the roles of president and COO. Co-founder and outgoing President David Cheek will remain as chairman and managing partner. Co-founder and former Executive Vice President and Managing Director Bruce Lane will remain as vice chairman. Gary Block will continue to serve as chief investment officer and partner, Bisnow reported Tuesday.
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Dawn Sweeney, the former president and CEO of the National Restaurant Association, is joining JLL as a strategic partner for its nonprofit and association practice group. In her new role, she will advise JLL's clients on strategic planning for their real estate decisions. Sweeney retired from the National Restaurant Association in December 2019. She also serves as executive-in-residence at Georgetown University’s McDonough School of Business and as a board member of SITE Centers, a publicly traded REIT focused on retail centers.
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Vienna-based Middleburg Communities announced two new hires this week. Partner and President of Middleburg Development Selim Tay-Agbozo joins the firm from Tishman Speyer, where he was most recently a managing director. Tay-Agbozo worked his way up from an associate position at Tishman Speyer since 2014, and has since led the acquisition and development of more than 3.5M SF of properties totaling roughly $3B, per a press release. Tay-Agbozo has also held roles at Jefferies Group and UBS Securities.
Middleburg also hired Tommy Gallagher to be its new director of construction operations. Gallagher was previously vice president of construction at Grosvenor, where he oversaw the firm's entire North American construction activities. At Middleburg, Gallagher will oversee the day-to-day operations for the firm's construction business. Gallagher also served as a project manager at Balfour Beatty Construction prior to his stint at Grosvenor.
