This Week's D.C. Deal Sheet
Troubled shopping center owner PREIT scored a win this week in the form of a major lease at Springfield Town Center.
The publicly traded REIT signed Burlington to a 30K SF lease, bringing the mall to 95.5% occupancy. The news follows an approval PREIT secured last month to sell two parcels attached to Springfield Town Center for a new hotel and multifamily building.
PREIT was delisted from the New York Stock Exchange on Dec. 16 after its share price dropped below $1. The previous week, it had secured one-year extensions for two loans owned by Wells Fargo totaling $900M, essentially giving the firm more time to right the ship.
SALES
SRS National Net Lease Group brokered the sale of the Featherstone Square shopping center in Woodbridge for $5.2M, the firm announced Thursday. The 47K SF shopping center, originally built in 1966 and expanded 11 years later, is anchored by a 7-Eleven. The property features two buildings with 21 tenants in total. Andrew Fallon, Rick Fernandez and Philip Wellde of SRS brokered the sale.
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Washington Housing Conservancy acquired the 212-unit Loree Grand apartment community, preserving its existing IZ units and preserving the remaining units as affordable for those making up to 80% and 120% area median income. Property records show the nonprofit acquired the property from an affiliate of Nuveen for $71.5M on Dec. 23. The 10-story apartment building at 250 K St. NE is WHC's second D.C. purchase, and it was financed through Amazon's Housing Equity Fund and the Impact Pool administered by JBG Smith.
Franklin, Tennessee-based Community Healthcare Trust acquired a medical office building in Rockville for just under $14M on Dec. 13, Maryland property records show. The property, located at 2301 Research Blvd., is roughly 96K SF and was originally constructed in 1973.
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The General Services Administration has moved to acquire the headquarters of the Federal Energy Regulatory Commission for $20M, the Washington Business Journal reported last week. The 504K SF property, located 888 First St. NE, was purpose-built for the agency in 1995. The GSA is acquiring the property for roughly 20% of its assessed value thanks to an option it negotiated in its initial lease 30 years ago.
MERGERS & ACQUISITIONS
The Donohoe Cos. acquired 93-year-old firm Borger Management, Bisnow reported Wednesday. Borger’s residential property management services will form a new business for Donohoe, and its commercial property management services will be absorbed into Donohoe’s existing business. Several leaders from Borger are transitioning into new roles with Donohoe as well.
Transwestern announced it had acquired two D.C.-area tenant rep firms, more than doubling its tenant advisory firm, Bisnow reported Thursday. The two firms, MGA and West, Lane & Schlager, are expected to bolster Transwestern’s mid-Atlantic presence.
PERSONNEL
D.C. Mayor Muriel Bowser announced Colleen Green, a vice president at CORE DC and former chief of staff at the Department of Housing and Community Development, is returning to lead the latter agency as acting director, Bisnow reported Tuesday. Green replaces Drew Hubbard, who served as interim director for over a year without being confirmed for the position. Green will oversee several D.C. housing programs, including the Housing Production Trust Fund, in her new role.
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Rand Construction announced two executive hires Friday. Razavi Hesselton, former vice president of human resources at HITT, is now Rand’s senior director of human resources. Eoin Somerville, who was most recently a vice president and team lead at Clune Construction Co., joins Rand as a project executive.
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Elliot Doomes was selected as the General Services Administration’s new regional administrator for the Washington, D.C., region. A longtime Capitol Hill staffer, Doomes most recently served on a subcommittee of the the House Appropriations Committee and previously served as counsel for the Subcommittee on Economic Development, Public Buildings, and Emergency Management on the House Transportation and Infrastructure Committee.
