This Week's D.C. Deal Sheet
Montgomery County nonprofit MHP is the latest firm to acquire a transit-adjacent multifamily property after receiving financing from Amazon.
The firm acquired the 283-unit Rollingwood Apartments at 2535 Ross Road in Silver Spring near a future Purple Line stop, thanks to a $28M loan from the Amazon Housing Equity Fund and additional financing from Montgomery County, among others.
This is MHP’s third time receiving funds from programs backed by Amazon. It received grants for its Residences at Forest Glen project and its Nebel Street property in North Bethesda.
MHP plans to keep all units in the circa 1963 property affordable to those making up to 70% of the area median income, with additional income restrictions for a smaller proportion of the property.
SALES
The Tysons REI store has sold for the fourth time since 2013, this time to an owner interested in keeping the outdoor retailer around. Dallas-based NS Retail Holdings LLC acquired the property from Qualified Opportunity Fund LLC for $20.4M, the Washington Business Journal reported. The nearly 33K SF retail property at 8209 Watson St. in McLean is in a booming area of Tysons near Tysons Corner Center. But the parcel’s zoning makes it difficult to redevelop, which led to the Dallas firm, which prefers the stable cash flow of long-term retail tenants, acquiring the property, according to WBJ. Avison Young’s Jonathan Hipp, Richard Murphy and Timothy Farrell brokered the deal on behalf of the seller.
FINANCING
Donohoe Cos. secured $74.7M in construction financing to bring a combination Marriott AC Hotel and Residence Inn to Reston Town Center, Bisnow reported Wednesday. Artemis Real Estate Partners supplied the loan for the property, which is being developed through a ground lease agreement with BXP. The property is slated to feature 267 rooms at 1975 Opportunity Way and will bring development on the mixed-use campus closer to the newly opened Silver Line Metro station.
MILESTONES
Montgomery County Executive Marc Elrich joined officials Thursday at the groundbreaking of one of the largest deeply affordable housing projects in the county, according to a press release. AHC and Habitat for Humanity Metro Maryland are developing the 195-unit project at 4010 Randolph Road, near the intersection of Veirs Mill Road and Connecticut Avenue. The project is expected to deliver in the spring of 2025.
The 6-acre property is slated to feature 85 three- and four-bedroom units and a mix of rental and for-sale units. AHC’s portion will feature 168 rental units across six buildings affordable to those making between 30% and 60% of the area median income. Habitat is developing 24 garden-style condominiums affordable to those earning 30% to 50% AMI, as well as three single-family homes affordable to those earning up to 70% AMI.
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A cadre of developers was joined by D.C. officials Wednesday to break ground on a Columbia Heights redevelopment. Somerset Development Co., Jonathan Rose Cos. and Housing Up are developing The Faircliff, a 125-unit affordable housing project that will replace the Faircliff Plaza East apartment complex. More than 80% of the property’s former residents are expecting to return once the all-electric development is complete. In addition to 80 replacement units, the property is slated to add to the property 45 new housing units affordable to those making up to 50% of AMI. Roughly half of those new units will have three bedrooms.
As part of the redevelopment of Faircliff East, Crescent Communities is also building a market-rate property, the 197-unit Novel 14. Crescent’s second development in the District, the property is slated to include a mix of studios, one- and two-bedroom units. Land of a Thousand Hills Coffee & Social, an Atlanta-based coffee concept, is slated to open its first D.C. location at the property when it delivers in 2025.
PERSONNEL
Hines promoted Andrew McGeorge to be the firm’s new city head for Washington, D.C., as part of a fresh slate of leaders for its East region, Bisnow reported Tuesday. McGeorge, a multifamily specialist, joined Hines from Fairfield Residential in 2020 and initially served as a senior managing director. The Houston-based development giant also replaced its leaders in New York and Boston as it looks to continue its pivot away from specializing in office.
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Jefferson Apartment Group promoted its longtime senior vice president of property management to lead JAG Management Co., the firm announced Monday. Patty Holt, who has been with JAG since 2009, will oversee a portfolio totaling roughly 7,000 units across 10 states. Holt previously served as director of real estate for Greystar Management Services' mid-Atlantic region, where she oversaw a 10,000-unit portfolio. JAG expects to reach that unit count in the next two years, according to a release.
