This Week's D.C. Deal Sheet
D.C.'s law firm sector, one of the largest segments of its office market, expanded this week with a new entrant to the city.
Cravath, Swaine & Moore LLP, a firm that was founded in 1819 and has offices in New York and London, signed a deal to open a new office in Downtown D.C. The firm inked a 21K SF lease at 1601 K St. NW, brokerage firm Stream Realty announced Wednesday.
Stream Realty’s Kyle Luby, Andy Eichberg and Matt Pacinelli brokered the deal on behalf of the building’s owner, Morgan Stanley. CBRE’s Lou Christopher, Asher Inman, Jordan Brainard O’Neil, Lewis Miller, Andrew Sussman and Munish Viralam represented the tenant.
The firm plans to move in this fall to the entire third floor of the 11-story building, which was developed in 2006 by JBG Smith for law firm anchor tenant Kilpatrick & Lockhart, which is now known as K&L Gates and still occupies the building. It is also home to the D.C. office of Stream Realty, which moved in last year as part of its expansion in the region.
"Securing Cravath as a tenant in this building is a big win for the ownership, validating their continued investment in the building to ensure its position at the top of a competitive market," Eichberg said in a release. "The firm was looking to open its new office quickly to expand its ability to service clients in D.C. and saw value in the building’s strong ownership, high-quality upgraded amenities, and centralized location to restaurants and hotels."
SALES
Jubilee Housing closed on the purchase of three apartment buildings totaling 165 units in Northwest D.C.'s Mount Pleasant neighborhood. It paid $12M for Sarbin Towers at 3132 16th St. NW, $8.8M for Park Marconi at 3150 16th St. NW and $11.4M for Richman Towers at 3055 16th St. NW.
The nonprofit developer plans to renovate the buildings and preserve the units as affordable for those making 40% to 50% of the area median income. It received $15M for the deals from Amazon's Housing Equity Fund, in addition to funding from LISC DC, Housing Justice Parks 2.0 and a loan from United Bank.
***
Rockville retail center The Shops at Congressional Village sold at a foreclosure auction Wednesday for $44M, the Washington Business Journal reported. The winning bidder was an affiliate of Bethesda-based Ivea Restaurant Group, backed by Chicago's Windfall Group. The 99K SF shopping center, located about a mile north of Pike & Rose, has tenants including Gyroland, a Verizon store, a salon and a furniture store.
***
A vacant retail center near the new Ashburn Metro station, The Shops at Moorefield Village, sold this week to a Reston-based firm that is considering a mixed-use redevelopment, the Washington Business Journal reports. Oslo Real Estate Development LLC acquired the property at 43315 Crandall Square and 43335 Van Geison Terrace from Atapco Properties for $14.5M. The center was home to a Harris Teeter grocery store that closed in 2020.
LEASES
The American Center for Physics inked a deal to move its headquarters from College Park to Downtown D.C. The nonprofit signed a 30K SF lease at 555 12th St. NW, a building branded as District Center and owned by a joint venture of MetLife Investment Management and Norges Bank Investment Management.
Stream's Pacinelli, Eichberg and John Klinke represented the landlord in the deal. Savills' David Cornbrooks, Wendy Feldman Block and Tim Foley represented the tenant.
***
Federal Realty signed commercial furniture dealer Washington Workplace to a 2,200 SF lease at a newly renovated office building in Arlington. The building, branded The Offices at The Village at Shirlington, is located at 2700 South Quincy St. The renovation includes an upgraded lobby and common areas, new bike storage room and a "speakeasy" entrance to the new Astro Beer Hall that plans to open this winter.
***
Tatte Bakery & Cafe signed two leases in D.C. and Northern Virginia this week, the Washington Business Journal reported. The retailer leased a former bank branch at 515 King St. in Alexandria, and it signed on for 22K SF at Ivy City's Hecht Warehouse, where it plans to open a commissary kitchen to support its growing D.C. footprint. CBRE's Kelly Silverman and Gary Taubin represented the tenant, while KLNB's Joe Fleischmann and Michael Pratt represented Douglas Development, which owns both buildings.
***
Blank Street Coffee, a popular New York brand, signed deals to open its first two D.C. coffee shops at 1847 Seventh St. NW in Shaw and 1250 Connecticut Ave. NW in Dupont Circle. The company said it plans to open 10 locations in the D.C. area, including one at The Wharf, which celebrated a major milestone this week.
MILESTONES
The Wharf's development team celebrated the completion of its 1.25M SF second phase on Wednesday, the five-year anniversary of its Phase 1 grand opening. The second phase features the development's fourth hotel, the Pendry Washington D.C., plus three office buildings, an apartment building, a condo building, several new public spaces, and a host of restaurants and retailers.
The restaurants include Gordon Ramsay's Hell's Kitchen and Fish & Chips concepts, Philippe by Philippe Crow, Limani, Kinfolk Southern Kitchen, Little Chicken, Mason's Famous Lobster Rolls and Flora Flora. Phase 2 also features Live K Karaoke Bar, barber shop Scissors & Scotch, merchandise store Dock Shop and early childhood education provider Goddard School. The development was spearheaded by Hoffman-Madison Waterfront, a partnership of Hoffman & Associates and Madison Marquette.
"The Wharf is for everybody," Hoffman & Associates Chairman Monty Hoffman said in a statement. "It's a place where people connect with each other — to live, to work, to dine, and to celebrate. The waterfront, food, and music may be the catalysts, but it's the millions of visitors who create their own authentic experience."
