This Week's D.C. Deal Sheet
Jefferson Apartment Group and joint venture partner Mitsui Fudosan America closed on a deal for the former RCA Tower in Rosslyn, clearing the way for a residential development.
The partners plan to construct two new towers connected by a glass skybridge on the site of the office property. The 422 units will range in configuration from studios to three-bedrooms with dens.
Located at 1901 North Moore St. in Arlington, the property is a block from the Rosslyn Metro station. JAG first revived plans to convert the circa 1969 office tower to apartments in 2020, two years after Weissberg Corp. backed out of similar plans.
The property will feature 11K SF of retail and amenities like a two-story fitness center and rooftop pool and an observation deck with views of the Key Bridge and downtown D.C.
“Despite economic headwinds, JAG and MFA were able to execute on the closing of this exceptional property on schedule,” JAG Chief Operating Officer Greg Lamb said in a release.
SALES
The Milestone Group has acquired three Northern Virginia multifamily properties totaling 870 units, the firm announced this week. The acquisition price wasn't disclosed, but the buyer said it assumed the seller’s existing financing, saving $20M in prepayment costs in the process. The three properties — two of which are located in Fairfax and one in Herndon — bring Milestone’s national Fund V to nearly 6,000 units. The group has offices in Dallas, Atlanta and Boca Raton.
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Matan Cos. acquired a 44K SF industrial property in Capitol Heights, Maryland, the firm announced this week. Matan spent $4.9M for the fully leased property located at 8520-8540 Ashwood Drive, according to property records. In a statement, Matan associate Scott Morris said the price was “well below replacement costs” for a property inside the Beltway.
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George Washington University has exercised an option to acquire a 463K SF downtown D.C. office property for $11.5M, the Washington Business Journal reported Thursday. The property has long been owned by the World Bank and is occupied by the Department of State, but the university reportedly exercised an option it secured in 1980 to acquire the office.
The property’s 2023 tax assessment value is more than $231M, indicating a significant discount for GWU. The university didn't offer details on its plan for the property, where the General Services Administration’s lease runs until September 2028.
LEASES
Foulger-Pratt has landed a tenant to fully lease a 76K SF industrial property it built on spec in Sterling, Virginia, Transwestern announced Wednesday. Transwestern represented the landlord in the deal, and Dan Coats of JLL represented the undisclosed tenant.
The property, named Gateway 28 and located at 22900 Indian Creek Drive, is part of the Dulles Corridor, where industrial vacancy is at 1.6%, per Transwestern. The brokerage’s Stephen Cloud, Caulley Deringer and Andrew Hassett secured the 10-year deal.
FINANCING
Amazon announced Wednesday it is committing $24M to fund 122 affordable housing units on a WMATA-owned parcel near the Grosvenor-Strathmore Metro station. With the financing, Fivesquares Development and Aimco plan to move forward with development of Strathmore Square. The project’s first phase is slated to feature two residential buildings totaling 574 units, with 21% of total units held affordable for those making 50% to 70% of the area median income. The developers are also planning to create a public central park on-site and expand the Strathmore Music Center.
MILESTONES
City Ridge developers Roadside Development and North America Sekisui House have begun move-ins at the project's three remaining residential buildings, which total 533 units. Residents at Botanica, Crescendo and The Coterie have full access to amenities across the 1.1M SF mixed-use development, including a private playground for families, an entertainment lounge with a sports simulator and a rooftop pool with a members-only social club. The newly opened buildings join The Branches, which opened this spring, and D.C.’s first Wegmans grocery store.
